Tag: Bureau of Economics

Displaying 301 - 320 of 464 results.

We examine the abnormal returns of rival firms to determine whether four retailing mergers that occurred during the late 1980s reduced competition. We use the stock returns of retailers in geographic markets unaffected by the merger to control for the efficiency-signaling effect of...
A merger that permits the combined company to reduce the marginal cost of producing a product creates an incentive for it to lower price. Accordingly, the rate at which cost changes are passed through to prices matters to the evaluation of the likely competitive effects of an...
The report analyzes the potential impact of the proposed tobacco industry settlement on cigarette prices, industry profits, and government revenues. The main conclusions of the report are that (1) the antitrust exemption may reduce competition in the industry and allow the industry...
Concern over regulated monopolies entering unregulated vertically-related markets is grounded in the incentives for such firms to cross-subsidize their unregulated enterprises or discriminate against competitors in the unregulated market. However, a prohibition against regulated...
There is an ongoing public policy debate regarding vertical integration and its concomitant information flows. Of particular concern is that the information derived by an auctioneer (such as a distributor) will be shared with its integrated bidder (such as a manufacturer), leading to...
Several theories of nonprofit hospital behavior predict that nonprofit hospitals behave in the consumer interest and thus do not exercise market power. If these theories are correct, then antitrust enforcement of hospital mergers should be restricted only to those markets in which a...
The study examines changes in the consumption of fat, saturated fat, and cholesterol from 1977 to 1990, a period when federal policy governing diet-disease claims changed. The study finds that dietary improvements occurred more rapidly in the post-1985 years, when the rules were...
This paper provides a theory that explains why government allow free entry and selectively promote entry under certain conditions and deter entry under other conditions. The analysis also identifies conditions under which optimal policy requires that large-scale entry is freely...
Since Milgrom and Roberts (1986) game theorists studying advertising have generally assumed that aggregate advertising expenditures are perfectly observed by consumers. In the real world, however, consumers see only a small fraction of the commercials aired by a given firm and...
This study analyzes whether ocean shipping rates are affected by the presence and practices of ocean liner conferences. The study provides some support for the conclusion that some aspects of the conference system may contribute to higher shipping rates, particularly when the...
This study estimates the relationship between intrastate trucking rates and three different types of state-level regulations: 1) the strictness with which rates are regulated; 2) the requirements placed on motor carriers seeking to enter the market; and 3) whether the state provides...
Firms seeking to merge face antitrust scrutiny from either the Department of Justice (DOJ) or the Federal Trade Commission (FTC). Unlike the DOJ, the FTC litigates its cases in front of its own administrative law judges (ALJ), and then hears the appeal itself, rather than using the...
This study describes the pricing and distribution of salt during the National Industrial Recovery Act period and beyond (1930-1945). Two FTC cases brought to enforce the Robinson-Patman anti- discrimination law during this period are examined in some detail. Also included is a...
This study assesses empirically the competitiveness of the long distance telephone market. To do so, it estimates firm-specific long- run demand elasticities for AT&T and its rivals for long distance service marketed to households and small businesses during 1988-91.
One of the puzzles about the recent steel VRAs is whether they limited imports toward the end of the 1980s. The 36 percent depreciation of the dollar between 1984 and 1989 is believed to have rendered the VRAs ineffective by 1989. This paper estimates the effect of the dollar...
The U.S. Department of Justice and Federal Trade Commission Merger Guidelines assume that entry that is likely and sufficient will ultimately correct any anticompetitive harm resulting from a merger. If this anticompetitive harm takes the form of collusion, then such entry will...
This paper presents an analysis of the merger decisions between 1982-1992. The survey of cases suggests that the plaintiffs win roughly half the time. Plaintiffs were no more likely to win if a case was heard by a judicial panel dominated by Republican than Democratic appointees. In...
This paper combines state-level data on trucking rates with information on state-level regulations to estimate the independent effect on rates from three different types of motor carrier regulations: rate regulation; entry regulation; and the provision of antitrust immunity for...
This analysis derives the optimal incentive contracts owners offer managers who engage in Stackelberg-quantity competition. In contrast to the Coumot case, the owner of the leading firm motivates his manager to strictly maximize profits and thereby gives no incentives for increased...
The study analyzes the effects of dumped and/or subsidized imports on the domestic industries with which they competed. The authors found that, in nearly 90 percent of the 179 cases analyzed, unfair imports caused reductions in domestic industry revenue of less than 10 percent...

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