Short Answer Question 2 In 1978 U.S. judge and antitrust scholar Robert Bork cal

Question

Short Answer Question 2 In 1978 U.S. judge and antitrust scholar Robert Bork called the Robinson-Patman Act “Antitrust’s Least Glorious Hour” and led to an effort to repeal that Act. The Act was not repealed, but many economists thought it should be. Based on what we’ve learned in this course, if your job was to lead the effort to repeal that Act what would be the economic rationale that you would put forth for repealing the Robinson-Patman Act? (As part of your rationale, explain briefly what exactly the act does.

Explanation / Answer

Robinson Patman Act is a united states federal law that prohibits Anti competitive practices particularly price discrimination.

This act should be repealed because anticompetitive practices lead to deadweight loss or we can say results in loss in total surplus. Consumer surplus decreases with price discrimination and some other consumer surplus for to producers but some gets lost.

Thus to increase total surplus and thus efficiency the act should be repealed.

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