While it is often argued that competition drives down costs and improves quality,here isastudy that highlights the negative effects of competition:

The studies' underlying theme is that as competition increases, and profit margins decrease, firms have greater incentive to engage in unethical behavior that improves their costs (relative to competitors). Other firms, given the cost disadvantage, face competitive pressure to follow; such competition collectively leaves the firms and society worse off.

Arguably, bothHanniganandMetropolitan Operaare examples of this phenomenon, as they both involve companies that sought a competitive advantage by using unfair business strategies:InHannigan, Sears sought to cut costs by coercing Fabricated to modify its contractual agreement with Tru-Han, and inMetropolitan Opera, Wagner-Nichols sought to cut costs by selling unauthorized recordings of performances financed by other parties.Do you agree that competition creates pressures for businesses to engage in unethical behavior?If so, what, if anything, can the law do to mitigate these pressures?In general, do you think there should be more or fewer restrictions on competitive behavior?