Glossary of economics research
Results of search for Sherman Act follow:
Sherman Act:
1890 U.S. antitrust law. It has been described as vague, leading to ambiguous
interpretations over the years.
Section one of the law forbids certain joint actions: "Every contract,
combination in the form of trust or otherwise, or conspiracy, in restraint of
trade or commerce among the several states, or with foreign nations, is hereby
declared illegal...."
Section two of the law forbids certain individual actions: "Every person
who shall monopolize, or attempt to monopolize, or combine or conspire with
any other person or persons, to monopolize any part of the trade or commerce
among the several states, or with foreign nations, shall be deemed guilty of a
felony..."
The reasons for the passage of the Sherman Act:
(1) To promote competition to benefit consumers,
(2) Concern for injured competitors,
(3) Distrust of concentration of power.
Source: lectures and handouts of Michael Whinston at Northwestern U in
Economics D50, Winter 1998
Contexts: IO; antitrust; regulation
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