The ARCO decision: Inroads into the per se rule under Section 1 of the Sherman Act

In this study, the author analyzes the 1990 U.S. Supreme Court decision inAtlantic Richfield Company vs. USA Petroleum Company approving Atlantic Richfield’s maximum pricing plan improsed on its distributors (despite the Court’s recognition that theper se rule forbade such schemes). Theper se rule had been one of the last substantial measures of effective antitrust policy administered by enforcement authorities and the courts, perhaps even more fundamental than scrutiny of proposed mergers and predatory practices. That principle has been weakened by the ARCO decision. The author addresses some of the likely consequences of the ascendancy of the Chicago School and the NeoClassical theory generally in antitrust interpretation.     

Optimal fiscal zoning when the local government is a discriminating monopolist

Monopoly zoning by local governments has been studied extensively since the original article by White [1975, in: E. Mills and W. Oates, eds., Fiscal zoning and land use controls (Lexington Books, Lexington, MA)]. However, little or no attention has been paid to the possibility of monopolistic discrimination under such a regime. The question is: When will zoning multiple lot sizes be feasible given that buyers with different valuations of land cannot be coerced into purchasing particular lots? The literature on imperfect price discrimination by monopolists is brought to bear on this question. It is shown that the resulting zoning strategy may or may not involve multiple lot sizes. The factors determining the optimal strategy are studied in detail, with particular emphasis on the nature of the market for undeveloped land in the community.     

Ethical issues confronting travel agents

This article provides an overview of current and prospective ethical issues facing commercial (as opposed to leisure) travel agents. Industry wide ethical issues include conflicting pressures from suppliers and clients, competency requirements for agents and misleading advertising and sales claims (vaporware in industry jargon). Issues with travel suppliers include calculation and payment of commissions, fare loopholes, frequent flyer plans and the use and abuse of benefits directed to individual employees. Issues with corporate clients of travel agents include hidden preferred carriers or suppliers, client pressure to use fare loopholes and hidden relationships with corporate travel consultants. Future issues include protecting client privacy, free riding, and divergent international business practices. Thomas W. Dunfee is the Kolodny Professor of Social Responsibility at The Wharton School of the University of Pennsylvania. His current research interests focus on social contract theory and business ethics and on developing ethical standards for business transactions. He has published articles in the Business Ethics Quarterly,the Journal of Business Ethics,the Business and Professional Ethics Journal,and the Journal of Social Philosophyin addition to a variety of business and legal journals. He has consulted to a number of corporate clients and to several trade associations.Bruce M. Black is founder and president of McCord Travel Management. Since founding the company in 1980, he has led its growth to one of the 30 largest travel management firms in the United States, with annual sales of more than $100 million. Black is one of the inaugural members of the University of Illinois at Chicago Entrepreneurship Hall of Fame and is on the board of the International Theatre Festival of Chicago. He is also active in the exploration of a variety of industry related issues on behalf of the Super Regional Group of agencies.     

From standard to evolutionary finance: a literature survey

Management Review Quarterly - The traditional financial paradigm seeks to understand financial markets by using models in which markets are perfect, which includes agents who are...