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The Celler-Kefauver Amendment to Section 7 of the Clayton Act has now been made effective by judicial ratification. The Supreme Court has said that t… - Neil Fligstein
" "The Celler-Kefauver Amendment to Section 7 of the Clayton Act has now been made effective by judicial ratification. The Supreme Court has said that the Act means exactly what it says... It prohibits acquisitions, either stock or assets, where competition in any line of commerce in any section of the country may be substantially lessened.
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About Neil Fligstein
(born May 23, 1951) is an American sociologist, and Professor at the , known for his work in the field between economic sociology, political sociology and organizational theory, and wrote his most notable works on corporate control, the "architecture of markets," and "markets as politics."
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The power struggle within the firm determines which conception of control will dominate and how that conception will be translated into concrete strategies. The winners of this struggle will push the organization into a certain direction and maintain that direction as long as their strategies bring positive results.
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The leaders of the large firms dominated by the manufacturing conception saw the key problem as low prices. This meant that they were intent on controlling prices by cutting production. But once prices were stabilized, they were cautious about increasing production for fear that prices would again collapse. Since their competitors had roughly equal production capacities and costs, all would lose by too rapid an increase in production.
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