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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
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Dentsply, the dominant supplier of artificial teeth, is alleged to have engaged in illegal exclusive-dealing arrangements with its dealers, contributing to its monopoly position and higher prices than would otherwise have occurred. (Updated October 10, 2002) |
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Congress is taking steps to permit prescription drug imports from Canada. It is hoped that lower Canadian prices will reduce domestic drug prices, benefiting consumers and Medicare. Drug producers and other parts of government worry about the safety of the drugs. (Updated December 1, 2001) |
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Airline travel has fallen
since September 11. Losses and layoffs abound. The European Commission would
like to see more airline consolidation, rather than huge subsidies. (Updated November 1, 2001) |
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Companies are increasingly
using computer technology to charge consumers different prices in order
to maximize revenues. This will be limited by the reactions of consumers
to differential pricing and the release of information about buying habits
to companies. (Updated September 1, 2001) |
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The Telecom Act of 1986
has made little progress in increasing competition in the telephone market.
It is costly for companies to enter the local market, while local Bells
have little incentive to give up their local monopolies and compete in the
low-margin long distance market. (Updated July 1, 2001) |
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The French post office
is losing its monopoly, so it is recasting its staid image to one of a modern
electronic business. (Updated April 1, 2001) |
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TWA has agreed to be
taken over by American Airlines. Although American denies it, experts expect
that fares will increase and service be reduced, especially on routes dominated
by TWA and American. (Updated February 1, 2001) |
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The deregulation of
the energy industry has led to efficiencies that have facilitated lower
prices. The savings vary, however. (Updated October 1, 2000) |
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Maine has passed a law
allowing the state to negotiate lower drug prices for residents without
prescription insurance, and to impose price controls if prices do not fall.
The industry association alleges that the law is unconstitutional. (Updated September 1, 2000) |
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United Airlines plans
to take over US Airways. It promises better customer service and stable
fares. Consumers and politicians do not agree in view of the airlines' track
record since deregulation in 1978. (Updated August 1, 2000) |
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Drug companies charge
medical providers less than wholesale price, yet the providers still charge
federal and state medical programs the wholesale price. This practice is
leading the Justice Department and the state attorneys general to investigate. (Updated July 1, 2000) |
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A Republican senator
is sponsoring legislation that would prevent drug companies from charging
higher prices in the U.S. than in Canada or Mexico. The drug companies retort
that it would hurt consumers, the industry, and research. (Updated June 1, 2000) |
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The Federal Communications
Commission is planning to allow low-power radio stations to broadcast over
a four-mile radius. Radio programs should become more diverse as a result.
Full-power stations are opposed because their broadcasts could be disrupted.
They also appear to be concerned about the impending competition they face. (Updated February 1, 2000) |
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A judge has found that
Microsoft is a monopoly. Lawyers are beginning to file private class-action
lawsuits accusing the company of harming consumers. Microsoft may settle
the government's case to minimize its liability in the private suits. (Updated January 1, 2000) |
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Ocean Spray dominates
the cranberry juice market. It obtains its berries from a cooperative of
farmers. However, its control of the market has been weakened by a breakaway
group, Northland Cranberries. The results are increased cranberry production
and lower prices paid to farmers. (Updated December 1, 1999) |
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The traditional funeral
industry is suffering from a stable death rate, regulations, and the growth
of competition from vendors of cut-price caskets and from alternatives such
as cremation. The industry wants regulations to apply to nontraditional
providers of death care services. (Updated November 1, 1999) |
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Northwest Airlines dominates
its Minneapolis-St. Paul hub. Fares are 49 percent higher on the average
in the U.S. The company argues that it is due to business travelers being
a greater proportion of its passengers. Critics retort that fares are still
too high. (Updated June 1, 1999) |
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The biggest Coca-Cola
bottler is facing an antitrust lawsuit claiming that its exclusive territory
gives it too much control over prices and allows it to engage in price discrimination. (Updated March 1, 1999) |
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The Federal Communications
Commission has rejected the Telmex proposal for the prices charged to other
carriers for completing phone calls between the US and Mexico. It has also
criticized the surcharges levied by Telmex on each call. Consumers are said
to be hurt, but Telmex denies that the public interest has been hurt. (Updated February 1, 2000) |
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UK supermarkets are
being criticized for their high prices. They have displaced smaller stores
and become local islands of monopoly. Their size gives them advantages which
deter other stores from competing. Nevertheless, consumers are willing to
pay high prices in return for convenience. (Updated November 11, 1998) |
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The illegal drug market
is dominated by profitable and well-paid central gangs who act as wholesalers
and award franchises. Individual gangs and their members -- the distributors
-- make little money after accounting for costs. Gang wars reduce profitability
further. (Updated October 15, 1998) |
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