Thesis (Ph. D.)--University of Wisconsin--Madison, 1972. / Typescript. Vita. Includes bibliographical references.

Thesis (doctoral) - Universität, Freiburg, 2009. / Includes bibliographical references (p. [313]-339) and index.

Thesis (Ph. D.)--University of Texas at Austin, 2004. / Supervisors: Maxwell Stinchcombe and R. Preston McAfee. Vita. Includes bibliographical references.

Zugl.: Heidelberg, Universiẗat, Diss., 2004. / Includes bibliographical references (p. 391-403).

The problem considered in this study is the rapid growth in the number of the treble-damage suits brought under provisions of Section 4 of the Clayton Act and their impact on marketing management in formulating marketing strategies and policies.

Competition among firms is a central feature in all free market economies such as South Africa. One of the biggest threats to competition is the presence of cartels in markets. Cartels are firms which collude and compete unfairly in order to obtain monopoly-like profits. For more than fifty years South Africa’s economic landscape has been dominated by a vast network of cartels invital industries, such as bread, cement and fertiliser. South Africa promulgated the Competition Act 89 of 1998 to eradicate cartels and promote and maintain competition within the South African economy. The Competition Act 89 of 1998 prohibits cartel activity and provides for a fine of 10% of turn over for firms found to have engaged in cartel activity. For a variety of reasons, these administrative fines have failed to deter firms from commencing and/or continuing to engage in cartel activity. This is evidenced by the increasing number of firms engaged in large -scale cartels in essential industries, such as construction and food. Public outcry and global trends have persuaded legislators to enactment more stringent penalties in the Competition Amendment Act 1 of 2009. Section 12 of the Competition Amendment Act , which inserts section 73A, creates a cartel of fence in terms of which a director who causes his firm to engage in cartel activity faces ten year imprisonment or a fine of R500, 000. This research shall critically analyse the Competition Amendment Acts effect on deterring cartel activity in South Africa. Despite the legislators’ aim to provide a bigger deterrent for engaging in cartel activity, section 73A of the Competition Amendment Act arouses scrutiny. Firstly, the promulgation of the new cartel offence is contrary to the decimalisation trend in South African company law which recognises the difficulty in enforcing complex regulatory offences with criminal provisions. Secondly, Section 73(5)A appears to infringe an accused director's right to be presumed innocent. Lastly there are co-ordination issues between the National Prosecuting Authority and the Corporate Leniency Policy relating to the granting of prose cutorial immunity for firms which cooperate with the Competition Commission. There search will out line these problems in full. With regards to the problems caused by section 73A, the research will use a comparative analysis with the positionin the United States. Of all the jurisdictions which criminalise cartel activity, the United States was one of the earliest and the most prolific insecuring convictions for directors who cause their firms to engage in cartel activity. The United States has taken innovative steps to supplement their public cartel enforcement drive such as the prosecution of international cartels and the use of private actions. In this regard, the research will extrapolate favourable cartel enforcement measures from the United States for recommendation in order to assist with South Africa’s cartel enforcement and alleviate the problems caused by section 73A, outlined above.

Thesis advisor: Julie H. Mortimer / Three self-contained essays explore government regulation in the airline industry, and how such policies affect competition. The first essay explores the proposed merger between US Airways and American Airlines in 2013, approved by the US Department of Justice (DOJ) under the condition that 104 airport slots (“landing rights”) at Ronald Reagan Washington National Airport, DC, be divested to low cost carriers. To investigate the efficacy of the slot divestment, I estimate demand and cost parameters along with bounds on the shadow price of an airline slot, and simulate counterfactual post-merger prices and quantities with and without the regulatory divestment. I find that the merger and associated divestment together increased consumer surplus for markets involving Reagan Airport by roughly 25%. This increase in consumer welfare happened because the median price fell and the quantity of passengers increased. I show that the marginal value of a slot to an airline is decreasing in total slots, validating the DOJ’s decision to divest slots from the largest incumbent (US Airways, whose marginal value was $153 per flight) to new entrants with high valuation (like Southwest, $852). Beyond providing a key input to merger analyses, my approach can also aid in analyzing voluntary exchanges of airline slots, which are subject to DOJ approval due to their perceived anti-competitive effects. The second essay investigates the impact of airport slots on competition in general. Congestion is managed in high-density airports by capping the number of flights permitted in any given hour and allocating the rights (or slots) to a takeoff or landing among airlines. Airlines must use their slots at least 80% of the time to keep them for the next season. This rule creates a perverse incentive for airlines to hold on to underutilized slots by operating unprofitable flights instead of forfeiting these slots to a rival. Using exogenous removal of slot control at the Newark Airport in 2016, we investigate the lengths at which airlines go to meet the minimum requirements that let them keep the slots while violating what a neutral observer might call the “spirit” of the regulation. In my third essay, I assess the effectiveness of the gross upward pricing pressure index (GUPPI) in predicting price changes of the 2013 merger between US Airways and American Airlines. I compute GUPPI using only publicly available data, and find that it is close to the observed average increase in price. However, unlike most markets, flights to/from Reagan Airport experience a price drop, likely due to mandated structural remedies; the GUPPI predicts a price increase at Reagan Airport, whereas a full merger simulation correctly predicts a price reduction. I argue that the divergence between GUPPI and, if appropriate, the more accurate predictions of the merger simulation is due to the weaker assumptions made under the simulation. This underscores the fact that while GUPPI, with its restrictive assumptions and low computational burden, can be a good primary screening tool, it does not negate the necessity of employing a more rigorous secondary tool (such as a merger simulation) when assessing mergers. / Thesis (PhD) — Boston College, 2022. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

Airlines wanting to cooperatively set prices for their international air travel service must apply to the relevant authorities for antitrust immunity (ATI). Whether consumers, on net, benefit from a grant of ATI to partner airlines has caused much public debate. This paper investigates the impact of granting ATI to oneworld alliance members on their price, markup, and various measures of cost. The evidence suggests that implementation of the oneworld alliance without ATI did not have a statistically significant impact on the markup of products offered by the members, and there is no evidence that the subsequent grant of ATI to various members resulted in higher markups on their products. We find evidence suggesting that the grant of ATI facilitated a decrease in partner carriers’ marginal and fixed costs. Furthermore, member carriers’ price did not increase (decreased) in markets where their services do (do not) overlap, implying that consumers, on net, benefit from the grant of ATI in terms of price changes.

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