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60 Tex. L. Rev. 587 (1981-1982)
Monopolization: Corporate Strategy, the IBM Cases, and the Transformation of the Law

handle is hein.journals/tlr60 and id is 609 raw text is: Texas Law Review
Volume 60, Number 4,          April 1982
Monopolization:
Corporate Strategy, the IBM Cases,
and the Transformation of the Law
Lawrence A. Sullivan*
I. Introduction
The large, bureaucratic corporation is a familiar part of the na-
tional environment. Americans work for big companies, bank with
them, buy products from them, watch the television shows they spon-
sor, and engage them as allies or opponents in political contests.' Peo-
ple view their relationships with large corporations as normal, perhaps
inevitable, but they are nonetheless ambivalent about them.2 Many
people are convinced that the deployment of economic and political
power within corporate bureaucracies is an important determinant of
wealth, influence, and status in American society. They may admire
the solidity and oft-proclaimed efficiency of the great corporations, yet
they distrust the corporations' power and sometimes suspect their
intentions.3
Such ambivalence is not new. Late in the last century, the national
* Earl Warren Professor of Public Law, University of California (Berkeley). B.A. 1948,
University of California (Los Angeles); J.D. 1951, Harvard University.
I wish to thank Professor Alan McAdams of Cornell University, who read two earlier drafts,
criticized my economic analysis rigorously and my prose gently, and provided valuable informa-
tion about the computer industry and the record in the government's case against IBM, and Pro-
fessor Leonard Loss of Berkeley, who made several valuable suggestions.
I. See SUBCOMM. ON ANTITRUST AND MONOPOLY OF THE SENATE COMM. ON THE JUDICI-
ARY, 85TH CONG., IST SEss., REPORT ON CONCENTRATION IN AMERICAN INDUSTRY (Comm.
Print 1957) See also Sullivan, Preserving Efficiency and 4ssuming Corporate Accountability, 94
CONF. BD. INFORMATION BULL. 6 (1981) (outlining the basic ideas set forth in this introduction).
2. Compare, e.g., R. BARBER, THE AMERICAN CORPORATION (1970) (arguing that corpora-
tions threaten democracy) with THE ATTACK ON CORPORATE AMERICA (M. Johnson ed. 1978)
(rejecting political criticism of corporations).
3. See C. Dean, Effects of Large Firm Size on the American Political Process: A Prelimi-
nary Survey of Literature (1981) (staff working paper, Bureau of Competition, Federal Trade
Commission).

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