Friday, February 11, 2011
Seeking out and building monopolies, Rothschild strategies in non ferrous metals international markets (1830-1940)
Posted by D. Daniel Sokol
Miguel A. López-Morell (Universidad de Murcia) and Jos M. O'Kean (Departamento de Economía, Universidad Pablo de Olavide & IE Business School) have undertaken some historical work in their piece Seeking out and building monopolies, Rothschild strategies in non ferrous metals international markets (1830-1940).
ABSTRACT: The aim of this article is to analyse the strategies employed by the Rothschilds until 1940 to limit competition in the non ferrous international market. We will study how they opted for rigid demand products of highly concentrated supply which were favourable to market control (mercury, nickel, lead and copper and sulphur) by assuming administrative monopolies (mercury from Spanish Almadn Mines) or through control of the leading businesses of the respective markets (Le Nickel, Pearroya and Rio Tinto). We will also analyse how the family was able to gain worldwide monopolies, or if not, how they promoted collusive oligopolies with the competition in any number of forms in their quest to maintain profitability and to flee from any competition.