United States v. Loew's Inc. explained

Litigants:United States v. Loew's Inc.
Arguedate:October 16
Argueyear:1962
Decidedate:November 5
Decideyear:1962
Fullname:United States v. Loew's Incorporated et al.
Usvol:371
Uspage:38
Parallelcitations:83 S.Ct. 97; 9 L. Ed. 2d 11; 1962 U.S. LEXIS 2332
Prior:Appeal from the United States District Court for the Southern District of New York
Holding:Block booking of movies—the offer of only a combined assortment of movies to an exhibitor—violates antitrust laws.
Majority:Goldberg
Joinmajority:Warren, Black, Douglas, Clark, Brennan, White
Dissent:Harlan
Joindissent:Stewart
Lawsapplied:Sherman Antitrust Act

United States v. Loew's Inc., 371 U.S. 38 (1962), was an antitrust case in which the Supreme Court of the United States held that block booking of movies—the offer of only a combined assortment of movies to an exhibitor—violates the Sherman Antitrust Act.

Besides its legal consequences, the court's decision affected economic theory, explaining product bundling as a form of price discrimination.[1] [2] [3]

See also

Notes and References

  1. Stigler . George J. . George Stigler . 1963 . United States v. Loew's Inc.: A Note on Block-Booking . . 1963 . 152–157 . 10.1086/scr.1963.3108731 . 3108731 . 146962621 .
  2. Adams . William James . Janet L. . Yellen . Janet Yellen . 1976 . Commodity Bundling and the Burden of Monopoly . . 90 . 3 . 475–498 . 10.2307/1886045 . 1886045 .
  3. Kenney . Roy W. . Benjamin . Klein . 1983 . The Economics of Block Booking . . 26 . 3 . 497–540 . 10.1086/467048. 725036 . 153735482 .