Archive for the ‘collusion’ Tag

Justice Department Investigates Airlines For Possible Price Collusion   Leave a comment

plane-50893_640Link: http://www.npr.org/2015/07/02/419405924/justice-department-investigates-airlines-for-possible-price-collusion

Summary: The Justice Department is planning to investigate 4 major airlines for price collusion. Investigators will question whether the airlines restricted supply to maintain higher ticket prices.

Original Air Date: July 2, 2015

Length: 3 minutes 35 seconds

Why IBM Is Paying $1.5 Billion To Lose A Business   2 comments

UNITED KINGDOM - MAY 21:  The IBM 'Power6' chip displayed at a product launch in central London, U.K., Monday, May 21, 2007. IBM introduced servers with its Power6 processor, a chip that lets users boost computer performance or reduce energy use, stepping up competition with Hewlett-Packard Co. and Sun Microsystems Inc.  (Photo by Graham Barclay/Bloomberg via Getty Images)

Link: http://www.marketplace.org/topics/business/why-ibm-paying-15-billion-lose-business

Summary: IBM has fell 7 percent off its stock price this week. IBM is selling its chip making company to GlobalFoundries for $1.5 billion over the next three years. It would sound unconventional, except when looking to the future. IBM will be receiving chips for the next ten years from GlobalFoundries. Deals like this are exceedingly rare, but IBM has realized truth: it would be more costly to shut down than to sell, and they may be saving money in the end.

Original Air Date: October 20, 2014

Length: 2 minutes 22 seconds

Prompt / Discussion: Discuss how this type of deal differs from collusion.

Rocky Pipkin, Private Eye Vs. The Raisin Outlaw   Leave a comment

ap060410025294Link: http://www.npr.org/blogs/money/2013/08/09/210550830/episode-478-rocky-pipkin-private-eye-vs-the-raisin-outlaw 

Summary: Describes the raisin industry in the United States and how historic events resulted in a government sanctioned raisin cartel.  Includes discussion of one producer breaking from the cartel, efforts by the cartel to enforce its collective actions, and other political and economic impacts of this defection. 

Length: 21:51 min

Original air date: August 9, 2013

Posted August 12, 2013 by audioecon in Government, Oligopoly, Planet Money, Regulation

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