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US Automotive Industry Structure

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The existence of only three big U.S. auto manufacturers is evidence that the market structure is anti-competitive and that antitrust laws are being broken. Evaluate this assertion.

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Solution Summary

Whether the existence of only three US automobile manufacturers indicates anti-trust law violations.

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A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

* Bid rigging
* Predatory pricing
* Price fixing
* Tying
* Vendor lock-in

Given that one or more of these companies in regularly in financial trouble, ...

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