Predatory pricing with a 12% market share: recoupment via tacit collusion in the cigarette oligopoly
Article Abstract:
The testimony of expert William B. Burnett in the case Liggett Group v. B & W Tobacco Corp. includes explaining the assumptions and usage of the average variable cost to assess predatory pricing in the cigarette market. Economic analysis of costs must distinguish between fixed costs and variable costs and must determine whether any economic justification exists for the pricing policy pursued by a company. In the cigarette industry, companies that sell branded cigarettes, often priced above competitive levels have the resources to practice predatory pricing in the generic cigarette market against new firms.
Publication Name: Antitrust Law and Economics Review
Subject: Law
ISSN: 0003-6048
Year: 1992
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The capital gains tax treatment of share value shifting: Division 19B under scrutiny
Article Abstract:
Division 19B of Part IIIA of the Australian Income Tax Assessment Act 1938 limits the ability of taxpayers to manipulate the values of shares in a company to reduce capital gains tax liability. Division 19B was enacted in response to the ineffectiveness of Part IIIA in general to remedy this problem. The calculations under the law are quite complex, and share value shifts are effectively being treated as disposals of portions of the shares.
Publication Name: Australian Business Law Review
Subject: Law
ISSN: 0310-1053
Year: 1997
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Lawyers share the blame for the savings and loan scandal
Article Abstract:
Lawyers working for bondholders played a crucial role in the savings and loan scandal, and their legal ethics required them to support criminal activity. Perhaps these ethics should be questioned in such cases. The details of the legal work performed by Jones, Day, Reavis & Pogue for Lincoln Savings & Loan are described at length, revealing the complicity of the lawyers in the scandal.
Publication Name: Business and Society Review
Subject: Law
ISSN: 0045-3609
Year: 1995
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