Antitrust Practices and Market Power Essay Example

Title page

Antitrust Practices and Market Power
Melissa Carey
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Content

Introduction………………………………………………………………………….........page 2

Investigation ……………………………….………………….………………………… page 2

Costs and Antitrust Act……………………………….………………….……………….page 2-3 Monopolies Bad for Society…………………………………………………………....... page 3-4 Conclusion………………………………………………………………………….......... page 4
References……………………………………………………………………………...... page 5

Antitrust Practices and Market Power
Introduction
This paper will discuss the antitrust law, specifically the Sherman Act of 1870. A claim was filed against the NCAA by the Governor of Pennsylvania for reasons that violate this act. It will also discuss monopolies and oligopolies, given an example of how they can be good and bad for the economy.
Investigation
Governor Tom Corbett had filed the law suit against the National Collegiate Athletic Association (NCAA) on January 2, 2013 in Harrisburg, PA. This investigation of antitrust behavior was claimed, according to Gov. Corbett, due to the NCAA being a “money-grubbing, publicity-hungry robber baron” (Miller, 2013). The Governor had claimed a 43 page suit declaring why the NCAA had such harsh punishments on Penn State football team and how these punishments where made without citing any rule that was actually violated. Therefore, Gov. Corbett claims that these sanctions put against Penn State, not only affected Penn State’s culture, but also effected the “commonwealth, its citizens, and its economy” (Miller, 2013) Costs and Antitrust Act The antitrust act that was violated in this case was the Sherman act. According to the textbook, the Sherman Act resides in two provisions that have to do with an act of mistrust or conspiracy being illegal; and how any person trying to monopolize any particular trade is considered guilty (McConnel, 2012). In this particular lawsuit against the NCAA, the Sherman Act was violated due to the fact that the NCAA is a huge