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DREI FUNKTIONEN EINES FRACHTGRUNDLAGENSYSTEMS IN ARTIKEL 60 DES MONTANVERTRAGES*
Author(s) -
Stegemann Klaus
Publication year - 1967
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1967.tb00869.x
Subject(s) - rivalry , punitive damages , competitor analysis , treaty , enforcement , point (geometry) , function (biology) , economics , law and economics , political science , law , microeconomics , geometry , mathematics , management , evolutionary biology , biology
SUMMARY Basing‐point pricing is not forbidden in the European Coal and Steel Community and, more important, the provisions of Article 60 of the ECSC‐Treaty require a pricing behavior which is analogous to the behavior of oligopolists who have established a multiple basing‐point system. This can be most clearly shown by distinguishing three functions of a privately organized basing‐point system: 1. The control function results from the nondiscrimination principle and the open‐price system as required by Articles 60 and 70 and as organized by the High Authority. 2. The vent function of a basing‐point system is granted in the ECSC by the right to align prices on the lower quotations of competitors who establish their price schedules on the basis of a different location. 3. The defense function can also be fulfilled by alignment (punitive bases). As far as the enforcement of the ECSC pricing rules is concerned, non‐conforming firms are disciplined by the High Authority. Competitive pressures from the outside and an enduring rivalry between national groups prevented a smooth functioning of the system. Increasingly private enterprise has substituted for the Treaty rules by reviving cartels and other forms of cooperation.