Identify the type of anticompetitive behavior illustrated by each of the followi

Question

Identify the type of anticompetitive behavior illustrated by each of the following:
a. A university requires buyers of season tickets for its basketball games to buy season tickets for its football games as well.
b. Dairies that bid on contracts to supply milk to school districts collude to increase what they charge.
c. The same individual serves on the boards of directors of General Motors and Ford.
d. A large retailer sells merchandise below cost in certain regions to drive competitors out of business.
e. A producer of carbonated soft drinks sells to a retailer only if the retailer agrees not to buy from the producer’s major competitor.

Explanation / Answer

a.Tying, where products that aren't naturally related must be purchased together. b.Price fixing, where companies collude to set prices, effectively dismantling the free market. c.Dividing territories, an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories. d.Dumping, where a company sells a product in a competitive market at a loss. Though the company loses money for each sale, the company hopes to force other competitors out of the market, after which the company would be free to raise prices for a greater profit. e.Exclusive dealing, where a retailer or wholesaler is obliged by contract to only purchase from the contracted supplier.

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