Public Policy Views on Conglomerate Mergers.

Abstract

Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers. ArticlesPublic Policy Views on Conglomerate Mergers.Irvin M. GrossackIrvin M. GrossackPublished Online:30 Nov 2017https://doi.org/10.5465/ambpp.1969.4979957AboutSectionsPDF/EPUB ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail AbstractThe large number of recent "conglomerate" mergers plus the size of many of the firms involved has propelled this phenomenon to the center of the public's attention. These mergers have brought forth certain policies by public authority that can have an important bearing not only on the legality of new mergers but also on the mergers that have already taken place. This paper explores the economic rationale behind the anti-merger activity of public authorities, reviews some of the Court cases relevant to merger law, and assesses some very recent public action in this field. 1. The Price System Neil Chamberlain, in his latest book, wrote. "To society the firm is an instrument to be used. To the firm society is a field to be exploited."[1] Our system is supposed to work through prices. Society depends on prices in conjunction with private incentives to provide answers to the following types of questions: what to produce; how much to produce of the various possible goods and services; how much to pay the factors of production, such as the suppliers of labor, land, and capital; what means of production to use. At the heart of the price system there must be the widespread notion that prices are "fair." There have been various ideas on what is meant by fair prices, and these ideas have importantly shaped economic systems. in medieval times, the Church advanced the notion that ethical considerations dependent on the relative status of buyer and seller should determine fair prices. Marxists argued that prices of goods and services should be determined solely by their labor content. In modern mixed economies, such as India, the fair price is one that covers direct costs plus a fair return on capital.FiguresReferencesRelatedDetails Vol. 1969, No. 1 Permissions Metrics in the past 12 months History Published online 30 November 2017 Published in print 1 August 1969 InformationCopyright of Academy of Management Journal is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. However, users may print, download, or email articles for individual use.KeywordsCONGLOMERATE corporations -- Law & legislationUNITED States -- Politics & government -- 1963-1969PRICESSALE of business enterprises -- Law & legislationACTIONS & defenses (Law) -- CasesANTITRUST lawCONSOLIDATION & merger of corporations -- Law & legislationDownload PDF