The American Spectator

The Spectacle Blog

Mickey Kaus:

Attention, Thomas O. Barnett: I went to Staples to buy a replacement cartridge for my HP printer. Usually I buy a "Staples" brand replacement--they're a little cheaper. But they were no longer on display. Only the pricier HP cartridges were for sale. I asked the store manager if this was because HP had sued Staples. No, she said--HP "paid us more" to carry only their brand. ... If true, isn't this a pretty clear antitrust violation? HP would seem to be trying to enforce a (presumably lucrative) semi-monopoly position in HP replacement cartridges. I don't think semi-monopolists can do that. Or am I misremembering antitrust law? ... Backfill: Business Week has covered this, and finds a prof who says there's no antitrust violation because "there are alternatives being sold at other office superstores, and other printer brands are being sold at Staples." Second opinion, please. ...

Who needs the Feds? A market in equilibrium will punish price-gouging colluders with lower sales. Of course, imperfect information retards the process of reaching equilibrium. Fortunately, we have the internet to speed things up. Spread the word: Buying HP printer cartridges at Staples is for suckers!

topics:
Business, Law