The Connection Between Government Regulations and Market Structures

538 Words Feb 5th, 2018 2 Pages
U.S. economic philosophy promotes the idea that free competition has to dominate the system and that the authorities need to introduce a series of regulations in order to make sure that particular bodies refrain from taking on unfair attitudes.
There are four basic antitrust laws:
The Sherman Act was passed in 1890 and it is meant to prevent any form of collaboration between two or more companies that results in an unfair restraint on trade or commerce. It is generally intended to prohibit monopoly from taking place and it discourages any companies that might express interest in creating such a situation. Fixed prices, competitors dividing markets between themselves, and market allocation are some of the most important concepts that the act is meant to fight.
The Clayton Act was passed in 1914 and it is meant to address actions that are likely to discourage competition or to lead to monopoly taking place.
The Robinson-Patman Act was passed in 1936 and it concentrates on preventing larger companies from taking advantage of their purchasing power and discriminating through the prices they charge for products that are similar to the competition's.
The Federal Trade Commission Act has been passed with the purpose of enabling the Federal Trade Commission to enforce the other antitrust laws. It basically focuses on making certain that companies…