Monopolization by 'Raising Rivals' Costs': The Standard Oil Case

摘要: Standard monopolized the petroleum industry during 1870s by cartelizing stage of production where entry was difficult – transportation. enforced transportation cartel shifting its refinery shipments among railroads to stabilize individual railroad market shares at collusively agreed on levels. This method policing effective because possessed a dominant share refining, dominance made possible with assistance railroads. The facilitated Standard's acquisitions and prevented new refiner charging disadvantageously high rates non-Standard refiners. While used position in refining sell refined product monopoly price purchase crude oil monopsony price, did not possess independent power refining. Whenever broke down, pricing vanished.