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Series

2006

Antitrust

Journal Articles

Entertainment, Arts, and Sports Law

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Full-Text Articles in Law

Antitrust And Inefficient Joint Ventures: Why Sports Leagues Should Look More Like Mcdonald's And Less Like The United Nations, Stephen F. Ross, Stefan Szymanski Jan 2006

Antitrust And Inefficient Joint Ventures: Why Sports Leagues Should Look More Like Mcdonald's And Less Like The United Nations, Stephen F. Ross, Stefan Szymanski

Journal Articles

Antitrust law generally favors joint ventures that allow separate firms to integrate economic functions while continuing to compete as independent entities. In evaluating the risks to competition that joint ventures could pose, insufficient attention has been paid to the risk that joint ventures with market power may be structured so that the parties, acting in their independent self interest, will prevent the venture from providing innovative goods and services responsive to consumer demand. In these cases, it may be better if a single firm provided services rather than having them provided jointly.

We illustrate this problem by challenging the conventional ...