Environment

Abstract

For our purposes the environment can be divided into spatial and non-spatial. In the non-spatial environment the major, indeed only, factor of importance is the Federal Trade Commission (FTC). It is a government body charged to supervise that there are no artificial restraints to trade and no corporation gains an unfair monopoly power. The FTC follows its task by, among others, investigating pricing practices, acquisitions and mergers and initiating antitrust proceedings with the purpose of stopping or reversing the behavior in question. It may abstain from the proceedings or discontinue them if the alledged offender agrees to sign a decree in which it commits itself to discontinue the action. These so-called consent decrees usually apply for a certain period, say five to ten years, although decrees for undefined periods have also been enforced.