Chapter 5: Government Regulation of Competition and Prices

1

• Chapter 5 Government Regulation of Competition
  and Prices

2
Regulation

• Regulation by government has occurred primarily
  to protect one group from the improper conduct of
  another group.
• Until the middle third of this century,
  regulation of business was primarily directed at
  protecting competitors from misconduct of other
  competitors.
• Beginning with the middle third of this century,
  regulation expanded in the interest of protecting
  consumers.

3
Government Regulation of Business
4
Acts Related to Regulation

• The Sherman Antitrust Act prohibits conspiracies
  in restraint of trade and the monopolization of
  trade.
• The Clayton Act prohibits mergers or the
  acquisition of the assets of another corporation
  when this conduct would tend to lessen
  competition or give rise to a monopoly.