Bid rigging

1
A Classic Restraint of Trade

• Bid rigging
• Covenants not to compete
• Ancillary restraints and naked restraints
  unreasonable prices
• sale of business with good will
• Actions of association members were
  conspiratorial

2
Elementary Economics

• Demand curve elasticity of demand
• Costs fixed, variable, and total costs
• Average total cost v. marginal cost
• Economies of scaleoptimal sizing
• Natural monopolies

3
Enforcement

• DOJInjunctive relief (behavorial v. structural)
  criminal prosecution
• Govts suing as private plaintiffs parens
  patriae
• FTC gasoline, food, clothing
• cease desist orders under Clayton Act and
  Robby-Pat and FTCA
• Private suits trebel damages under sec.4
  injunctive relief under sec. 16
• CIDs pre-merger notification BizRev ltrs

4
Jurisdiction Service Limitations

• Jurisdiction exclusive to federal courts
• Transacting business (due process) concept
• Conspiracy acts statelong-arms for
  individual.Defendants
• Concealment tolling of S/L piggy-backing
  private suits and Clayton sec. 5(i) suspension