Predatory Price Cutting: The Standard Oil (N. J.) Case

  title={Predatory Price Cutting: The Standard Oil (N. J.) Case},
  author={J. Sears McGee},
  journal={The Journal of Law and Economics},
  pages={137 - 169}
  • J. McGee
  • Published 1 October 1958
  • Economics
  • The Journal of Law and Economics
THE purpose of this paper is to determine whether the pre-dissolution Standard Oil Company actually used predatory price cutting to achieve or maintain its monopoly. This issue is of much more than antiquarian or theoretic interest. Settling it is of direct importance to present anti-trust policy. At the very least, finding the facts should aid in defining certain hazy notions that now figure in discussions of monopoly and its control. The Standard Oil case of 19111 is a landmark in the… 

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Joseph agreed to stay out of the oil business, but soon came back, put up another bulk plant, and started cutting prices

    Commercial was owned by the Peerless Refining Company of Cleveland. Standard claimed to have fired Wooten because of his alleged "drug habit

      At 3041, he says an unnamed peddler at Columbiana, Ohio also was forced to sell. The Columbiana affair arose out of price-cutting by Freedom Oil

      • as did many incidents in Ohio

      Maxon obviously wanted revenge on Standard

        Boardman himself was a little vague: "I don't know whether they sold out, but the impression was that they sold out to the Standard

          He also had a grudge against Standard, and apparently tried to blackmail them

          • 2949 et seq., 2969 et seq., 2990. '59