1. Some antitrust experts argue that a firm possessing market power should be challenged by the government with the goal of eradicating the power as quickly as possible. Others maintain that the government should be patient with short-term market power. Explain those two points of view. 2. Adidas contracts with NCAA schools and their coaches to promote its products. An NCAA rule limits the amount of advertising that may appear on uniforms and equipment. Adidas complained that those restrictions on promotional rights “artificially limit the price and quality options available to apparel manufacturers as consumers of promotional space, force manufacturers to pay additional amounts for billboard space or other advertising, decrease the selection of apparel offered to the end consumer, increase the price of the apparel for end consumers, and financially benefit the NCAA.” Adidas sued the NCAA on antitrust grounds. a. What antitrust violations were cited by Adidas? b. Decide the case. Explain. See Adidas v. NCAA, 64 F.Supp.2d 1097 (1999).
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