Title: The Methodology to Reform the Cynical Actions of Amazon’s Monopoly:
Introduction and Overview of Research: The research conducted for this project focuses on merger reviews and antitrust laws. Despite the antitrust laws, monopolies such as Amazon continuously grow, enabling them to garner power, averting the possibility of healthy competition between companies. Because of loopholes presented in the definition of a monopoly, companies easily can avoid being regulated by the government. The effects on the economy are detrimental. Not only do monopolies result in the closure of businesses, but employees become jobless, market failure occurs, and consumers are subjected to higher prices of products, once all competition in the market has been eliminated. Thus, the definition of a monopoly and the process and regulation of merger reviews need to be re-assessed to reveal hidden faults, so as to inhibit the growth of monopolies. Background and Rationale: Monopolies are not a current, uprising issue that society is facing for the first time. It has been relevant throughout the United States’s history, as seen with the Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914. Both laws sought to terminate the dominance of monopolies, however failing because of the inadequate manner in which the laws were written. The first law, because of loosely phrased words, failed to prevent companies, such as the American Sugar Refining Company, from concentrating almost all the sugar available for purchase in the United States (“Sherman Antitrust Act”, 2019). Not only do the loosely phrased words in a law contribute to the continued collectivization of power for monopolies, but the definition of a monopoly is also flawed itself. An economist's perspective for what is considered a monopoly resides in two components: short-term consumer welfare and market share. Though both are definitely viable factors to consider, firm size, concentration levels, and regulation over the number of processes and departments a company controls are important as well. (Khan, 2017). The inefficacy of not implementing rigorous scrutiny over merger reviews results in the failure to control monopolies efficiently. Not only are, “Mergers over a certain size–currently about $85 million--are required to pre-notify the antitrust agencies, after which the agencies decide which to formally investigate.” (Kwoka, 2018). Not all the cases of merger reviews are being assessed, meaning there are many cases of monopolies being pushed aside. Additionally, not only have mergers become more complex in evaluating whether it is harmful, as the number of merger cases increased, “the number investigated has only been an increase of 42 to 51. Furthermore, the percent of investigates has dropped from 3.8% to 2.6%” (Kwoka, 2018). Monopolies, “are much more dominant than they were even 15 years ago” (Leonhardt, 2018). It is vital that monopolies be dissolved immediately, as they have detrimental effects on society. With monopolies, there is a possibility of a reduction in, “greater product variety, higher product quality, and greater innovation, which drives productivity growth and helps lift living standards.” (Khan, 2017). Based on the preceding statement, consumers are at risk of not receiving high-quality products. Markets are prone to danger as, “With higher prices, consumers will demand less quantity, and thus the quantity produced and consumed will be lower than it would be under a more competitive market Structure” (Thoma, 2014). Thus, both consumers and markets are both being affected as high prices, restrict the number of products consumers can buy, which also results in the market not functioning as it should be. Moreover, businesses are getting closed down due to unhealthy/ no competition and consequently, employees are losing their jobs affecting their homes and families. A single monopoly in a field can affect the lives of many in several different ways, this action needs to be taken immediately. Research Methodology: The Research Question is: how can the antitrust laws and merger reviews be reformed, so monopolies like Amazon cannot find loopholes within the definition of a monopoly, thus promoting competition? The Research Thesis is: the antitrust laws need to be revised in order to include a ban on vertical integration, impose a prophylactic limit, a public utility regulation, and a reform on predatory pricing. Furthermore, any merger should be reviewed, and the process needs to be less convoluted and expensive. With the new revisions, monopolies undoubtedly will be reduced leading to a free, productive market. The research analyzes the two flaws, which result in the growth of monopolies: the definition of a monopoly and merger reviews. The research will be based on four articles, which have conducted studies on the exact topic as the one presented in this research proposal, and each article examines critical issues with monopolies and proposes different reforms for each flaw pointed out. The Research Design Model: Meta-analysis was conducted on the four quantitative and qualitative studies looked at. For the Data Collection, meta-aanlysis was the best type of research suited for the research topic. Meta-analysis gave the option to look at past failures of specific laws, and the solutions presented by other researchers. Then using that information, it can be used to formulate a new law, which would make sure to include certain regulations, which previoulsy had not been there, allowing monopolies to grow. The two variables presented are the type of regulation on a monopoly/certain rules on merger reviews which is the independent variable. Those rules affect the number of monopolies in the economy, making the dependent variable the number of monopolies in the economy. The Data Collection: After studying the four articles intensively, each proposed different perspectives and ideas on ways to resolve the issues presented in the problems associated with a monopoly. Since the topic of the research is the antitrust reform and the way the merger review process is set up, it was not attainable for me to do the other methods of research. For surveys and questionnaires, the general population would not have done extensive research on such a convoluted topic of law. Furthermore, for data collection, an original experiment would have to be conducted. In order to test out an experiment, the laws passed so far and the way the merger reviews are being set up would have to be manipulated, to see what changes improve the reduction of monopolies. However, as a person with no access to the power to change the laws, it was not realistically attainable. Lastly, there are surveys which could have been a possible option for; however, meta-analysis gave the option to look at past research conducted by professionals in the specific field, and see the failures and successes discussed. Product Objective: The conclusions that have been made, after rigorous examination of the four studies, will be presented in the form of a brochure. The brochure briefly will explain to the readers the background of monopolies. Then, the brochure will delve into each specific section for the solution of the research topic, including imposing a prophylactic limit, imposing a public utility regulation, improving regulation/review overall mergers, reforming the predatory pricing document, and banning vertical integration. It will also explain how the reform should be implemented, and the benefits of the reform. Thus, the brochure makes it easy for the audience to easily flow through all the heavy information given to them. The target audience for the product is ideal for lawyers specialized in the field of Antitrust Law, as they can easily access the brochure and refer to it when attempting to reform the antitrust laws. Furthermore, by sending brochures, it is easy to spread the information throughout the country, by emailing it. Logistical Considerations: In order to create the brochure, there needs to be an available template online, which can be found on Pages. There also will be a timeline included that outlines the data collection, product development, and audience distribution.
(On the next page is the feedback/approval from the advisor)