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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
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It used to be that flowers were grown near markets. Transport costs were high, and with such a fragile commodity as roses, the nearer to the market the grower was, the more profitable the operation. Now, logistical advances are changing all of that. (Updated June, 2007) |
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Middle-income countries have become more vociferous in their objections to the cost of prescription drugs. Some, like Thailand, have taken steps to no longer recognize the international patents protecting those drugs, and have begun to import cheaper generics. The government’s argument is that the poor of the nation will benefit from cheaper drugs. Is that the case? (Updated June, 2007) |
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Sony and Bertelsman, two of the largest record companies in the world, merged together in 2004, creating Sony BMG. That merger reduced the number of major players in the market from five to four - owning about 80% of the market. Is that enough to induce collusive behavior, if only tacitly? (Updated May, 2007) |
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Adam Smith argued in the Wealth of Nations that individuals, acting in their own best interests, would meet the needs of society. So why doesn't that apply to people getting vaccinated? (Updated April, 2007) |
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The global diamond market is no longer controlled by De Beers exclusively. The company that once controlled 45% of rough diamond production but 80% of total sales, now only controls about 40% of rough diamond production and about 45% of total sales. What explains the change? (Updated March, 2007) |
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The U.K.'s Office of Fair Trading and the U.S. Justice Departments are jointly investigating British Airways, Virgin Atlantic, United Airlines and American Airlines for colluding in passenger fares and fuel surcharges. The investigation comes as British Airways stands accused of operating a cartel for cargo fares. (Updated July 2006) |
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The National Football League (NFL) has shown that it can operate a cartel successfully--so much so that other professional sports leagues like the NBA, NHL, and MLB can only sit on the sidelines and hope someday to be able to adopt the NFL's practices. (Updated May 2006) |
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Can honest people survive in a competitive world? In some cases they can't; in others, they most definitely can. It all depends upon other people's behavior. (Updated November 2005) |
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Gillette is convinced that men continually seek a better, closer shave. In the first quarter of 2006, it will launch the Fusion, the first five-blade razor, in both manual and battery-powered versions. (Updated October 2005) |
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Consumer watchdog groups have filed suit against some of the biggest funeral home chains and the top U.S. casket maker, arguing that the organizations have conspired to inflate the casket costs. (Updated June, 2005) |
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The U.S. Justice Department is investigating proposed plans by some major newspaper publishers to buy additional newspapers. (Updated April, 2005) |
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Wal-Mart tried a different approach this past post-Thanksgiving shopping season: not offering the steep discounts it's offered in the past. The retail giant regrets that strategy now. (Updated February, 2005) |
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Southwest Airlines can fly anywhere it wants, as long as it's not more than one state away from its home airbase. Or so says the Wright Amendment. (Updated February, 2005) |
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Airlines around the world have notices the advantages of smaller, more efficient jets to prop up slumping revenues and increasing costs. Enter the Embraer 170. (Updated November, 2004) |
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OPEC has agreed to increase its targeted oil production rate by 1 million barrels a day, and wants other nations outside the cartel to do the same. However, since OPEC already produces more than the "new target" of 27 million barrels, few consider the agreement to be anything more than a symbolic gesture. (Updated November, 2004) |
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A U. S. Justice Department amnesty program is succeeding in encouraging violators who report themselves--and others--during an investigation of price fixing among numerous chemical companies. (Updated September, 2004) |
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New NBC Universal Poised for Big Gains in Entertainment
Profits
Full Summary |
NBC is in the process
of finalizing its purchase of Universal Studios, and the new company, NBC
Universal, will be one of the five largest entertainment companies in the
world. (Updated July, 2004) |
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Ever since Twisters
opened on the first weekend of May,1996, movie studios have been pushing
each other for advertising space and consumers' dollars during the summer
movie onslaught. This summer promises to be no different: Two dozen new
movies will be vying for consumers' attention and dollars at the theaters.
Here's the problem: Studios would rather not have this headache. (Updated June,, 2004) |
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The Federal Trade Commission
(FTC) is looking into possible charges that computer chip makers, including
Samsung Electronics, Hynix Semiconductor, Micron Technology, and Infineon
Technologies, have conspired to raise prices of memory chips. (Updated April, 2004) |
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Schick will roll out
a new four-blade razor for men, the Quattro. The company assumes that many
men will be willing to pay $9 for a new razor that touts an even closer
shave than with only three blades. (Updated November, 2003) |
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As Kimberly-Clark, the
maker of Huggies diapers, and Proctor & Gamble, the maker of Pampers,
increased their competition last year, Kimberly-Clark tried to raise its
price by reducing the number of diapers in its packages. Rather than following
with its own price increase, as it had done in the past, P&G responded
with its own price cut. The result: P& G gained significant market share
at the expense of Kimberly-Clark. (Updated September 10, 2003) |
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Overcapacity in the
world steel industry is resulting in low steel prices, increased imports,
and widespread bankruptcy. The U.S. wants a reduction in global and domestic
capacity and temporary tariffs on imports. (Updated May 1, 2002) |
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The Venezuelan President
is trying to increase cooperation between OPEC and non-OPEC oil producers.
The plan is to revive oil prices by reducing oil production by each country.
(Updated December 1, 2001) |
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The commission that
travel agents receive from selling airline tickets is being reduced again.
Travel agents are angry and would like to be exempted from antitrust prosecution
so they can bargain over commissions. (Updated October 1, 2001) |
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United
and American dominate the U.S. airline market. They compete, matching each
other's innovations. However, some argue that they collaborate, forming
a cartel. (Updated August 1, 2001) |
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TWA has agreed to be
taken over by American Airlines. Although American denies it, experts expect
that fares will increase and service be reduced, especially on routes dominated
by TWA and American. (Updated February 1, 2001) |
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McDonald's has unveiled
its new slogan, "We Love To See You Smile," and the associated advertising
campaign. This follows a corporate restructuring, new menu items, and more
efficient kitchens and ordering systems. McDonald's success will depend
critically on the quality of customer service. (Updated August 1, 2000) |
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The world price of coffee
is at a seven-year low. This is stimulating talk by the Association of Coffee
Producing Countries of withholding coffee from the market to raise prices.
However, history indicates that this is unlikely to be successful. (Updated June 1, 2000) |
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PepsiCo is following
Coca-Cola in doubling the rate of increase in the price it charges bottlers
for concentrate, while raising marketing support payments. The strategy
is to increase profitability, but avoid losing volume. (Updated January 1, 2000) |
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Konka, a Chinese television
manufacturer, is entering the U.S. market. It hopes to make inroads into
the high-definition segment with its relatively low prices, but faces stiff
competition from established producers such as Sony, which has a higher-quality
product. Existing producers are expected to introduce lower-priced HDTVs
soon. (Updated May 1, 1999) |
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The Justice Department
has successfully prosecuted cartels, which were fixing prices and dividing
sales in the markets for two vitamins. The conspiracies are estimated to
have cost consumers hundreds of millions of dollars. (Updated April 1, 1999) |
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Exxon and Mobil are
considering merging in ourder to reduce costs and to take advantage of each
other's strengths. Hastening the union is the low price of oil. (Updated January 1, 1999) |
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Anheuser-Busch is going
to raise its prices in October 1998, encouraged by the high summer demand
for beer and the successful talking-lizard ads. It hopes to avoid the loss
of market share and profit that it experienced in 1996, when its price increases
were undercut by Miller. (Updated October 15, 1998) |
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