Joseph C. Gallo

The cyclical behavior of the Department of Justice's antitrust enforcement activity

An automatic control device for use, for instance, in automatically draining solution from a pressurized vessel, such as for instance a deliquescent desiccant type air or gas dryer. The control device is adapted to periodically exhaust waste liquid which collects in, for instance, a dryer vessel, from the latter. The device comprises a motor power operated valve coacting with fluid conveying means which is adapted to be disposed in a drainage line leading from the vessel. The motor operated valve is automatically actuated to open position at predetermined periods whereupon the waste liquid is drained from the vessel, and then the valve is automatically closed until the next actuation thereof. The valve and the fluid conveying means is disposed exteriorly of the motor power unit for the valve and is rapidly disassemblable therefrom, for permitting rapid removal and reassembly of the power unit from the valve and fluid conveying subassembly, and rapid replacement of worn parts from the valve body. Thus, in the event that a malfunction occurs in the power system, the latter can be rapidly removed and replaced without depressurizing the system, or the valving can be manually operated, to prevent flooding or loss of pressure in the dryer system.

Antitrust Sanctions and a Firm's Ability to Pay

Gallo et al. (1994) analyze the sanctions imposed on firms convicted of criminal price-fixing under the antitrust laws. An element not included explicitly in their model is the ability of the firm to pay. Does the firms ability to pay influence the amount of the fine levied in criminal price-fixing cases?Data on the amount of fines are matched to seven accounting measures of the ability to pay for a sample of 386 firms convicted of price fixing between 1955 and 1993. Measures of ability to pay range from fund flows from current operations to total equity (technical bankruptcy). Most firms had the ability to pay the actual fines imposed. In many instances, firms had the ability to pay a Beckerian optimal fine. The ease with which actual fines can be paid brings into question the adequacy of deterrence even in those cases where the crime is detected.

Guess who came to dinner

This paper highlights the trends in antitrust enforcement for 1963–84. It is based upon an update by the authors of Posners study and follows his methodology, format, and operational definitions. The specific data examined include number of antitrust cases instituted, the duration of cases, DOJ and FTC won-loss records, nature of cases, fines and imprisonment and violations alleged.Since 1890, the number of multiple cases instituted by the DOJ resulting from the investigation of a single conspiracy has increased. Consolidating cases to reflect this pattern shows the apparent increase in DOJ cases represent fewer conspiracies of more limited nature that are being prosecuted under the Reagan administration. It is an intense cultivation of a well-known terrain rather than exploration of new frontiers in antitrust.The Antitrust Penalties and Procedures Act of 1974 has increased the size of fines and the use of jail sentences. Structural relief is less frequent.

Incarceration and fines: An empirical study of antitrust sanctions

Summary and conclusionsWith respect to court-imposed sanctions in completed criminal cases brought by the DOJ, the following empirical conclusions are reached for the period 1955–79:1.Peltzmans hypothesis of the behavior of a vote-maximizing regulator is not relevant to court-imposed antitrust sanctions unless it is reformulated.2.The extension of Posners “plausible hypothesis” to sanctions and to another time period is not supported.3.The APPA of 1974, during the period of this study, had little if any influences on fines and jail sentences; however, it may have had some influence on the proportion of criminal to civil cases.4.The level of monopolization has no positive influence on sanctions in criminal cases.5.There is a significant, positive influence of the real resources available to the Antitrust Division on sanctions in criminal antitrust cases. The bureaucratic-political process by whcih the real resources are made available to enforcement agents may be the useful subject for empirical analysis of antitrust enforcement.

Investment in a small antique

Investors in times of inflation seek to hedge their investments against inflationary loss. High inflation over many years helps account for a considerable growth in the market for small and cheap antiques such as depression glass, beer cans and baseball cards. This interest has been accompanied by a movement of the auction houses into the market to hold auctions for items that previously were unprofitable. As a low value antique, the first auction for the lead toy soldier, held by a major house, Phillips, occurred in December 1978. Auctions have since been held quarterly with the number of auctioned items increasing quite markedly, particularly after Christies entrance in the market in June 1981.

Graduate Preparation of the Undergraduate Professor.

principles and the economics of the aged. Each of these students seriously studied in the economics principles course because each was motivated to master the subject matter and apply it to his or her field of interest. The basic premise is that students learn more and perform better when the subject matter is relevant to their own particular interests. In each of these cases this premise was borne out. The favorable response to this format has attracted more students to the introductory course (contract) at ESC and while their performances continue to be evaluated it is hoped that they will continue to be considered so very highly successful.

The Social Costs of Monopoly

The essay recounts the contributions of earlier economists to the discussion of the social costs of monopoly. They largely duplicate more contemporary contributions.