ECON 1740 Lecture Notes - Lecture 11: Clayton Antitrust Act, Directv, Social Darwinism
2 Apr 2017
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A group of companies that join together to control a domestic industry. Invest in financial products that don"t spread in the economy. Companies start to become big (nation wide, global, etc. ) Before this, the companies were small or the big companies were ran by the government. People started having riots because of the mergers. Test question: sherman antitrust act didn"t do/change anything. The reason why politicians didn"t really do anything because they were receiving campaig corporations that were merging. 1879-1893: largest portion of mergers are done ent paign funds from. Combines firms that produce identical or similar products. Example: gm & saap, samsung & apple, at&t & direct tv. John d. rockefeller: big company that wiped out other small companies. Less companies in the industry, there is less competition. A firm in which each stage of production is managed by the firm. A vertical merger is cutting out the middleman. Example: general motors (car): necessary products -> rubber, steel, glass.
