The decision of the U. S. Supreme Court in the Cement Institute case (1948) had the effect of outfowing the system of basing point pricing used in the steel industry. But until 1953 the decision had relatively little effect on steel price competition because a strong sellers' market prevailed. In the future, as idle capacity continues, steel executives almost certainly will evolve a new method of securing uniform delivered prices. This objective for pricing policy is dictated by two broad sets of factors: the organizational structure of the industry (fewness of firms, an undifferentiated product, and inelastic demand), and the geographical distribution of the phnts of the largest producers. This article analyzes the multiple basing point system used up to 1948, the temporary expedients employed from 1948 to 1954, and the probable pricing policies of the future.
The Future of US Carbon-Pricing Policy
