search query: @indexterm Antitrust / total: 371
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| Author: | Levy, D. Rodriguez, A. |
| Title: | Does the threat of antitrust policy keep prices down? |
| Journal: | International Journal of Industrial Organization
1987 : SEP, VOL. 5:3, p. 341-350 |
| Index terms: | ANTITRUST PRICE LEVEL |
| Language: | eng |
| Abstract: | An examination of the pricing strategy of a firm facing the threat of antitrust policy. When pricing strategy does not directly affect the outcome of antitrust policy, it reduces the potential for expected future profits. The target firm short-run profit maximizes by increasing its current price. When pricing strategy affects the outcome, the incentive to increase the current prices can be enhanced or reduced, depending on the enforcement process. The study has `one Figure and 17 equations. The author opines that higher prices increase the likelihood of antitrust. |
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