Newsgroups: sci.space
Path: utzoo!henry
From: henry@utzoo.uucp (Henry Spencer)
Subject: Re: US/USSR prices (followup)
Message-ID: <1989Apr1.221048.22075@utzoo.uucp>
Organization: U of Toronto Zoology
References: <8903311804.AA13068@cmr.icst.nbs.gov>
Date: Sat, 1 Apr 89 22:10:48 GMT

In article <8903311804.AA13068@cmr.icst.nbs.gov> roberts@CMR.ICST.NBS.GOV (John Roberts) writes:
>If, however, a company is trying to drive its competitors out of major
>contention altogether, so it can control the market, this is considered
>restraint of trade, and is illegal in the US. Note that it is not necessary
>to drive the competitors entirely out of business. If their sales volume
>can be reduced to the point that they no longer enjoy economies of scale,
>they may not have sufficient funds to operate at a loss in order to restore
>volume, or they may become convinced that they can not make a profit on the
>product in question, and give it up...

Restraint of trade is illegal in the US only when it's not the government
doing it.  Consider what the shuttle almost did to expendable launchers.
Consider, for that matter, what the US has just done to China's sales
prospects for Long March.  One hopes that the Chinese will not give up
on Long March, despite the (so far) successful US attempts at restraint
of trade.  
-- 
Welcome to Mars!  Your         |     Henry Spencer at U of Toronto Zoology
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