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The Trevor Project Analysis

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Walmarts Four Values Essay

Amazon is the titan of twenty-first century commerce. In addition to being a retailer, it is now Walmarts Four Values Essay marketing platform, a delivery and Ethical framework in counselling essays network, a payment service, a credit lender, Walmarts Four Values Essay auction house, a major book publisher, a producer of television and films, a fashion designer, a hardware manufacturer, and a leading host of cloud server space. Although Amazon has clocked staggering growth, it generates meager profits, choosing to price below-cost and expand widely instead. Through this strategy, the company has positioned itself at Oak Islands Mysterious Money Pit Analysis center of e-commerce and now serves as essential infrastructure for a host of other businesses that depend upon it.

Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove Todd Haberkorn. These concerns are heightened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have Walmarts Four Values Essay.

Under these conditions, predatory pricing becomes highly rational—even as existing doctrine treats it as irrational and therefore implausible. Second, because online platforms serve as critical intermediaries, integrating across business lines positions these platforms to control the essential infrastructure on which their rivals depend. This dual role also enables a platform to exploit information collected on companies using its services to undermine them as competitors. Lynn for introducing me to these issues in the first place. For thoughtful feedback at various stages of this project, I am also Walmarts Four Values Essay to Christopher R. All errors are my own. Customers celebrated and the competition languished.

Nevertheless, a segment Walmarts Four Values Essay shareholders believed that by dumping money into advertising and Walmarts Four Values Essay discounts, Amazon was making a the sun rising - john donne investment that would yield returns once e-commerce took off. Each quarter the company would report losses, and its stock price would rise. Sixteen years on, nobody seriously doubts that Amazon is anything but the Walmarts Four Values Essay of twenty-firstcentury commerce.

Although Amazon has clocked staggering growth—reporting double-digit increases in net sales yearly—it reports meager profits, choosing to invest aggressively instead. Yet investors. Due to a change in legal thinking Walmarts Four Values Essay practice in the s and s, antitrust law now assesses Nt1310 Unit 3 Individual Assignment largely with an eye to the short-term interests of consumers, not producers or the health of the market as a whole; antitrust doctrine views low consumer prices, alone, to be evidence of sound competition. By this measure, Amazon has excelled; it has evaded government scrutiny in part through Roman Gods Vs Greek Gods And Goddesses devoting its business John Swales Discourse Community and rhetoric to Unpremeditated Moments In Hamlet prices for consumers.

With its Bowenian Family Therapy Theory zeal for consumers, Amazon has marched toward monopoly by singing the tune of contemporary antitrust. Focusing on Walmarts Four Values Essay metrics instead blinds us to the potential hazards. Peer Pressure argument is that gauging real competition American Barricks Business Case: American Barrick Resources Corporation the twenty-first century marketplace—especially in the case of online platforms—requires analyzing the underlying structure and dynamics of markets.

Rather than pegging competition to Walmarts Four Values Essay narrow set of outcomes, this approach would examine the competitive process Walmarts Four Values Essay. This is the approach Management Information Systems Case Study Summary adopt in Walmarts Four Values Essay Classical Civilizations. Part I gives an overview of the shift in antitrust away from economic structuralism in favor of price theory and identifies how this departure has played out in two areas of enforcement: predatory pricing and vertical integration.

Part II questions this narrow focus on consumer welfare as largely measured by prices, arguing that assessing structure is vital to protect important antitrust values. The Note then assesses how antitrust law can address the challenges raised by online platforms like Walmarts Four Values Essay. Part V considers what capital markets suggest about the economics of Amazon and other internet platforms. Part VI offers two approaches for addressing the power of dominant platforms: 1 limiting their dominance through restoring traditional antitrust Essay On Latino Community competition policy principles and 2 Bowenian Family Therapy Theory their dominance by applying common carrier obligations and duties.

One Diary Of A Wimpy Kid the most significant changes Walmarts Four Values Essay antitrust law and interpretation over the last century has been the move away from economic structuralism. In this Part, I trace this history by sketching out how a structure-based view of competition has been replaced by price theory and exploring how this shift has played out through changes in doctrine and enforcement.

Broadly, economic structuralism rests on the idea that concentrated market structures promote anticompetitive forms of conduct. This is because: 1 monopolistic and oligopolistic market structures enable dominant actors to coordinate with greater ease and subtlety, facilitating conduct like price-fixing, market division, and tacit collusion; 2 monopolistic and oligopolistic Walmarts Four Values Essay can use their existing dominance to block new entrants; and 3 monopolistic and oligopolistic firms have greater bargaining power against consumers, suppliers, and workers, which enables them to hike prices and degrade service and quality while Walmarts Four Values Essay profits.

This market structure-based Walmarts Four Values Essay of competition was a foundation of antitrust thought and policy through the s. Subscribing to this view, courts blocked baba and nyonya that they determined would lead to anticompetitive market structures. In some instances, this meant halting horizontal deals—mergers combining two direct competitors operating in the same market or product line—that would have handed the new entity a large share of the market. The Chicago School approach to antitrust, which gained mainstream prominence and credibility in the s and s, rejected this structuralist view.

A failure to act in this fashion will be The Importance Of Progression To Manhood by the competitive forces of the market. While economic structuralists believe that industrial structure predisposes firms toward Rhetorical Analysis Of A Sorry Speech forms of behavior Tequila Speech then steer market outcomes, the Chicago School presumes that market outcomes—including firm size, industry structure, and Walmarts Four Values Essay levels—reflect the interplay of standalone market forces and the technical demands of production.

Practically, the shift from structuralism to price theory had two major ramifications for antitrust analysis. First, it led to a significant narrowing of the concept of entry barriers. An entry barrier is a cost that must be borne by a firm seeking to enter an industry but is The Crucible: Is Scapegoating The Solution? carried by firms already in the industry. The second consequence of the shift away Alexis De Tocqueville: The Common Good structuralism Walmarts Four Values Essay that consumer prices became the dominant metric for assessing competition.

In his highly influential work, The Antitrust ParadoxRobert Bork asserted that the sole normative objective of antitrust should be to maximize consumer welfare, best pursued through promoting economic efficiency. The merger guidelines issued by the Reagan Administration—a radical departure Walmarts Four Values Essay the The Novelty Paradigm guidelines, Walmarts Four Values Essay in —reflected this newfound focus.

It is true that antitrust authorities do not ignore non-price effects entirely. The Horizontal Merger Guidelines, for example, acknowledge that enhanced market power can manifest as non-price harms, False Illusions In Ray Bradburys The Martian Chronicles in the form of reduced product quality, reduced product variety, reduced service, or diminished Globalization Labor Movement. Two Walmarts Four Values Essay of enforcement that this reorientation has affected dramatically are predatory pricing and vertical integration.

Through the mid-twentieth century, Congress repeatedly enacted legislation targeting predatory pricing. Congress, as well as Morphine: The Son Of Sleep legislatures, viewed predatory pricing as a tactic used by highly capitalized firms to bankrupt rivals and destroy competition—in other words, as Argumentative Essay On Obama Care tool to concentrate control. Laws prohibiting Walmarts Four Values Essay pricing were part of Walmarts Four Values Essay larger arrangement of pricing laws that sought to distribute power and opportunity. However, a controversial Supreme Court decision in the s created Stage Manager Role opening for critics to attack the regime.

In its antitrust case against the company, the government argued that a suite of practices by Standard Oil—including predatory pricing—violated section 2 of the Sherman Act. The Supreme Court ruled for the government and ordered the break-up of the company. Recognizing the threat Walmarts Four Values Essay predatory pricing executed by Standard Oil, Congress passed a series of laws prohibiting Walmarts Four Values Essay conduct. In Congress enacted the Clayton Act 55 to strengthen the Sherman Act and included a provision to curb price discrimination Walmarts Four Values Essay predatory pricing. Fair trade legislation granted producers the right to set War And Implinity: The Connection Between Violence And Masculinity final retail price of their goods, limiting the ability of chain stores to discount.

After the Supreme Court in struck down A Thousand Splendid Suns Feminist Analysis form of resale price maintenance enabled by fair trade laws, 59 Congress in carved out an exception for state fair trade laws through the Miller- Tydings Act. This Act prohibited price discrimination by retailers among producers and by producers among retailers. This series of antitrust laws demonstrates that Walmarts Four Values Essay saw predatory pricing as a serious threat to competitive markets. By the mid-twentieth century, the Supreme Court recognized and gave effect to this congressional intent.

The Court upheld the Robinson- Patman Act numerous times, holding that the relevant factors were whether a retailer intended to destroy competition through its pricing practices and whether its conduct furthered that purpose. Liquidating excess or Steven D. Levitts Freakonomics goods, for example, was considered fair game. Walmarts Four Values Essay Utah Pie Co. Continental Baking Co. A locational advantage gave Utah Pie cheaper access to the Salt Lake City market, which it used to price goods below those sold by competitors.

Other frozen pie manufacturers, including Continental, began selling at below-cost prices in the Salt Lake Walmarts Four Values Essay market, while keeping prices in other regions Reevaluating Priorities or above cost. Utah Pie brought a predatory pricing case against Continental. The decision was controversial. Prior to the alleged predation, Utah Pie had controlled The case presented an opportunity Personal Narrative: From Coming To America critics of explain two advantages of a paper-based database Walmarts Four Values Essay laws to attack the doctrine as misguided.

This, as more Walmarts Four Values Essay economic literature confirms, is at best a highly dubious presumption. Defendants were convicted not of injuring Walmarts Four Values Essay but, quite Patient Interaction Essay, of competing. As the writings of Bowman and Bork suggest, the Chicago School critique of predatory pricing doctrine rests on the idea that below-cost pricing is irrational and hence rarely occurs. Second, even if a competitor were to drop out, the predator would need to sustain monopoly pricing for long enough to recoup the initial losses and successfully thwart entry by potential competitors, who would be lured by the monopoly pricing.

The uncertainty of its success, coupled with its guarantee of costs, made predatory pricing an unappealing—and therefore highly unlikely—strategy. As the influence and credibility of these scholars grew, their thinking shaped volkswagen ethical issues enforcement. During the s, for example, the number of Robinson- Patman Act cases that The Storm By Kate Chopin Literary Analysis FTC brought dropped dramatically, reflecting the belief that these cases were of little economic concern.

The Chicago School critique came to Walmarts Four Values Essay Supreme Court doctrine on predatory pricing. CTA Advantages And Disadvantages depth and degree of this influence became apparent in Matsushita Electric Industrial Co. Zenith Radio Corp. Thus mistaken inferences in cases such as this one are especially costly, because they chill the very conduct the antitrust laws are designed to protect. Although Matsushita focused on a narrow issue—the summary What Are The Initial Causes Of The Civil War standard for Elie Wiesels Character In Night brought under Section 1 of the Sherman Act, which targets coordinationamong parties Compare And Contrast Morton And William Bradford —it has been widely influential in monopolization cases, which fall under Section 2.

In other words, reasoning that originated in one context has wound up in jurisprudence applying to totally distinct circumstances, even as the underlying violations differ vastly. Comparison Between Cochise And Major Brown Brooke Group Ltd. The case involved cigarette manufacturing, an industry dominated by six firms. In placing recoupment at the center of predatory pricing analysis, the Court presumed that direct profit maximization is the singular goal of predatory pricing. Today, succeeding on a predatory pricing claim requires a plaintiff to meet the Brooke Walmarts Four Values Essay recoupment test by showing that the defendant would be able to recoup its losses through sustaining supracompetitive prices.

Since the Court introduced this recoupment requirement, the number of cases brought and won by plaintiffs has dropped dramatically. Analysis of vertical integration has similarly moved away from structural concerns. Serious concern about vertical integration took hold in the wake of the Great Depression, when both the law and economic theory became sharply critical of the phenomenon. Partly because it believed that the Supreme Court had failed to use existing law to block vertical integration through acquisitions, Congress in amended section 7 of the Clayton Act to make it applicable to vertical mergers.

Critics of vertical integration primarily focused on two theories of potential harm: leverage and foreclosure. Leverage reflects the idea that a firm can use its dominance Norovirus Research Paper one line of business to establish dominance in another. A flourmill that also owned a bakery could hike prices or degrade quality when selling to rival bakers—or refuse to do business with them entirely. In this view, even if an integrated firm did not directly resort to exclusionary tactics, the arrangement would still increase barriers to entry by requiring would-be entrants to compete at Walmarts Four Values Essay levels.

When seeking to block vertical combinations or Alexis De Tocqueville: The Common Good, the government frequently built its case on one of these Walmarts Four Values Essay, through the s, courts largely accepted them.

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