COOPERATIVE ANTITRUST MONOPOLIZATION AND THE THEORY OF CONTESTABLE MARKETS

The judiciary has relied on a firm's market share to evaluate the presence of monopoly power for a Sherman Act monopolization violation. However, an allegation that a firm's market share constitutes monopoly power may be refuted by evidence that there exists a contestable market. Contestable market theory shows that there is no monopoly power where there exists a threat of entry of other firms. This theory thereby offers agricultural cooperatives, which may have a large market share by reasons of the antitrust immunity provided by the Capper-Volstead Act, an argument to overcome allegations of a Sherman Act monopolization violation.


Issue Date:
1984-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/29625
Published in:
Southern Journal of Agricultural Economics, Volume 16, Number 1
Page range:
129-135
Total Pages:
7




 Record created 2017-04-01, last modified 2017-08-24

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