Stable Prices

Stable Prices The third macroeconomic objective is to maintain stable prices. What exactly do economists look at when they talk about “the overall price level?” The most common price measure is the price index, known as the CPI. The CPI ‘measures the...

ANTITRUST LAWS AND EFFICIENCY

ANTITRUST LAWS AND EFFICIENCY Economic and legal views toward regulation and antitrust have changed dramatically over the lut three decades. During the period, industries Werede regulated, and antitrust lawabandoned its mission “to put- : an end to great...

New tools for antitrust policy

New tools for antitrust policy Most economists today agree that antitrust policy should ~ low prices and high product quality.Few kind words can be heard about monopolies. But true monopoly is extremely rare, and makers must analyze the behavior c:I a variety of...

Horizontal mergers

Horizontal mergers which companies in the same industry combine-are forbidden under the Clayton Act.when the merger is likely to reduce competition in the industry substantially. Case law and government merger guidelines clarified the meaning of the vague statutory...

Mergers: Law and Practice

Mergers: Law and Practice Companies can gain market power through growth (plowing back earnings and building new plants). But a much easier way to gain market, share, or simply to get bigger, is to merge with another company. The 1980s tremendous growth in...