Chapter 24 VOCAB

Predatory pricing:

The pricing of a product below cost with the intent to drive competitors out of the market

price-fixing agreement:

An agreement between competitors to fix the prices of products or services at a certain level. 

antitrust law:
 

Laws protecting commerce from unlawful restraints and anticompetitive practices. 

Tying arrangement:
 

A seller’s act of conditioning the sale of a product or service on the buyer’s agreement to purchase another product or service from the seller. 

Group boycott:

An agreement by two or more sellers to refuse to deal with a particular person or firm

attempted monopolization:

An action by a firm that involves anticompetitive conduct, the intent to gain monopoly power, and a “dangerous probability” of success in achieving monopoly power. 

Horizontal restraint:

Any agreement that restrains competition between rival firms competing in the same market. 

Horizontal merger:

A merger between two firms that are competing in the same market.

Vertical restraint:

A restraint of trade created by an agreement between firms at different levels in the manufacturing and distribution process.

Vertical merger:
 

The acquisition by a company at one stage of production of a company at a higher or lower stage of production (such as a company merging with one of its suppliers or retailers). 

Resale price maintenance agreement:

An agreement between a manufacturer and a retailer in which the manufacturer specifies what the retail prices of its products must be. 

Monopoly power:

The ability of a monopoly to dictate what takes place in a given market. 

Price discrimination:
 

A seller’s act of charging competing buyers different prices for identical products or services. 

Market power:

The power of a firm to control the market price of its product. A monopoly has the greatest degree of market power

Clayton Act:

A U.S. federal law designed to strengthen the country's antitrust laws by preventing anti-competitive practices. It specifically targets practices like price discrimination, anti-competitive mergers and acquisitions, and interlocking directorates that could lessen competition

Sherman Act:

A 1890 federal law that prohibits anticompetitive business practices and is the foundation of U.S. antitrust law. It was created to outlaw "trusts" and other combinations that restrain trade and to make it illegal for a company to monopolize or attempt to monopolize a market