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EconNews Online is South-Western College Publishing'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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As Kimberly-Clark, the
maker of Huggies diapers, and Proctor & Gamble, the maker of Pampers,
increased their competition last year, Kimberly-Clark tried to raise its
price by reducing the number of diapers in its packages. Rather than following
with its own price increase, as it had done in the past, P&G responded
with its own price cut. The result: P& G gained significant market share
at the expense of Kimberly-Clark. (Updated September 10, 2003) |
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Overcapacity in the
world steel industry is resulting in low steel prices, increased imports,
and widespread bankruptcy. The U.S. wants a reduction in global and domestic
capacity and temporary tariffs on imports. (Updated May 1, 2002) |
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The Venezuelan President
is trying to increase cooperation between OPEC and non-OPEC oil producers.
The plan is to revive oil prices by reducing oil production by each country.
(Updated December 1, 2001) |
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The commission that
travel agents receive from selling airline tickets is being reduced again.
Travel agents are angry and would like to be exempted from antitrust prosecution
so they can bargain over commissions. (Updated October 1, 2001) |
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United
and American dominate the U.S. airline market. They compete, matching each
other's innovations. However, some argue that they collaborate, forming
a cartel. (Updated August 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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McDonald's has unveiled
its new slogan, "We Love To See You Smile," and the associated advertising
campaign. This follows a corporate restructuring, new menu items, and more
efficient kitchens and ordering systems. McDonald's success will depend
critically on the quality of customer service. (Updated August 1, 2000) |
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The world price of coffee
is at a seven-year low. This is stimulating talk by the Association of Coffee
Producing Countries of withholding coffee from the market to raise prices.
However, history indicates that this is unlikely to be successful. (Updated June 1, 2000) |
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PepsiCo is following
Coca-Cola in doubling the rate of increase in the price it charges bottlers
for concentrate, while raising marketing support payments. The strategy
is to increase profitability, but avoid losing volume. (Updated January 1, 2000) |
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Konka, a Chinese television
manufacturer, is entering the U.S. market. It hopes to make inroads into
the high-definition segment with its relatively low prices, but faces stiff
competition from established producers such as Sony, which has a higher-quality
product. Existing producers are expected to introduce lower-priced HDTVs
soon. (Updated May 1, 1999) |
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The Justice Department
has successfully prosecuted cartels, which were fixing prices and dividing
sales in the markets for two vitamins. The conspiracies are estimated to
have cost consumers hundreds of millions of dollars. (Updated April 1, 1999) |
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Exxon and Mobil are
considering merging in ourder to reduce costs and to take advantage of each
other's strengths. Hastening the union is the low price of oil. (Updated January 1, 1999) |
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Anheuser-Busch is going
to raise its prices in October 1998, encouraged by the high summer demand
for beer and the successful talking-lizard ads. It hopes to avoid the loss
of market share and profit that it experienced in 1996, when its price increases
were undercut by Miller. (Updated October 15, 1998) |
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