Economics 224: Regulation and Antitrust: Government and the Market

Professor Christiaan Hogendorn
Spring 2008
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Syllabus

Sh = Roger Sherman, Market Regulation, Pearson/Addison Wesley, 2008.
Numbered readings are required, other readings are extra.

I. Introduction

Jan. 25 Th 1. Organization and Key Terms
  1. Sh, Chapter 1
Jan. 29 T 2. Cost Curves and Economies of Scale
  1. Sh, Chapter 2.
  • Emek Basker, "The Causes and Consequences of Wal-Mart's Growth," Journal of Economic Perspectives,Summer 2007.
  • Chandler, Alfred, "Scale, Scope, and Organizational Capabilities," Chapter 2 in Scale and Scope: the Dyanimics of Industrial Capitalism, Harvard University Press, 1990.
  • Michael Pollan, "Mass Natural," New York Times Magazine, June 4, 2006. pg. 15.
Jan. 31 Th 3. Monopoly
  1. Sh, Chapter 3: 3.1, 3.2, 3.3.
  • George J. Stigler, "Perfect Competition, Historically Contemplated," Journal of Political Economy, 65(1), 1957: 1-17.
Feb. 5 T 4. Externalities
  1. Sh, Chapter 3: 3.4, 3.5 and Chapter 19: 19.1.

II. Antitrust

Feb. 7 Th 5. Boundaries of the Firm
  1. Sh, Chapter 4.
Feb. 12 T 6. Oligopoly
  1. Sh, Chapter 5.
Feb. 14 Th 7. Antitrust Laws
FIRST QUIZ: Quiz    Answers
  1. Sh, Chapter 8.
Feb. 19 T 8. Horizontal Antitrust Cases
  1. Sh, Chapter 9: pp. 296-320.
  • Serdar Dalkir and Frederick Warren-Boulton, "Prices, Market Definition, and the Effects of Merger: Staples-Office Depot (1997)," Case 2 in John Kwoka and Lawrence White, eds., The Antitrust Revolution, 4th edition, Oxford, 2004.
  • Barry Lynn, "Breaking the Chain [Wal-Mart Antitrust Cases]," Harper's Magazine, July 1, 2006.
  • Richard J. Gilbert, "The Role of Potential Competition in Industrial Organization," Journal of Economic Perspectives, 3(3), 1989: 107-127.
Feb. 21 Th 9. Vertical Antitrust Cases
  1. Sh, Chapter 9: pp. 320-333.
  • Michael Riordan and Stephen Salop, "Evaluating Vertical Mergers: A Post-Chicago Approach," Antitrust Law Journal, Winter 1995.
  • Massimo Motta, "Vertical Restraints and Vertical Mergers," Chapter 6 in Competition Policy: Theory and Practice, Cambridge, 2004. (Especially GE/Honeywell section.)

III. Economic Regulation

Feb. 26 T 10. Introduction to Economic Regulation (Including Capture)
  1. Sh, Chapter 10.
  • David Newberry, "Theories of Regulation," Chapter 4 in Privatization, Restructuring, and Regulation of Network Utilities, MIT, 1999.
  • David Landes, "What Do Bosses Really Do?" Journal of Economic History, 46(3), 1986: 585-623.
Feb. 28 Th 11. Pricing Principles
  1. Sh, Chapter 11
March 4 T 12. Regulatory Institutions and Franchises
  1. Sh, Chapter 12.
  • Jose Gomez-Ibanez, "The Evolution of Concession Contracts: Municipal Franchises in North America," Chapter 7 in Regulating infrastructure : monopoly, contracts, and discretion, Harvard University Press, 2003.
March 6 Th 13. Energy
SECOND QUIZ: #Quiz    #Answers
  1. Sh, Chapter 17.
SPRING BREAK
March 25 T 14. Electricity
  1. Sh, Chapter 18.
  • Severin Borenstein, "The Trouble with Electricity Markets: Understanding California's Restructuring Disaster," Journal of Economic Perspectives, 16(1), 2002: 191-211.
March 27 Th 15. Transportation
    Sh, Chapter 16.
  • Severin Borenstein, "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, 6(2), 1992: 45-73.
  • Jose Gomez-Ibanez and John Meyer, "The Rediscovery of Private Contracts: U.S. Railroad and Airline Deregulation," Chapter 8 in Regulating infrastructure : monopoly, contracts, and discretion, Harvard University Press, 2003.
  • Pictures of CRRNJ Terminal: One Two Three

IV. Common Carriage, Openness, Neutrality

April 1 T 16. Common Carriers
  1. Eli Noam, "Beyond liberalization II: The impending doom of common carriage, " Telecommunications Policy, 18(4) 1994: 286-294.
  • Brett Frischmann. "An Economic Theory of Infrastructure and Commons Management," Minnesota Law Review, 89 April 2005.
  • Puffert, Douglas, "The Standardization of Track Gauge on North American Railways, 1830-1890," The Journal of Economic History, 60(4), 2000: 933-960.
April 3 Th 17. Interconnection and Telecommunications
  1. Sh, Chapter 14
  • #Gerald Faulhaber, "Access and Network Effects in the 'New Economy': AOL-Time Warner (2000)," Case 18 in John Kwoka and Lawrence White, eds., The Antitrust Revolution, 4th edition, Oxford, 2004.
  • Nicholas Economides, "Economics of the Internet," NET Institute Working Paper, 2007.
April 8 T 18. Communications
  1. Sh, Chapter 15.
April 10 Th 19. Internet
  1. Gerald R. Faulhaber, "Network Neutrality: The Debate Evolves," International Journal of Communication, Vol 1 (2007)

V. Health, Safety, and Environmental Regulation

April 15 T 20. Valuing Life and Other Hard to Value Things
  1. Sh, Chapter 20.
April 17 Th 21. Environmental Regulation
  1. Sh, Chapter 21.
April 22 T 22. Workplace Health and Safety (and Consumer Perceptions)
  1. Sh, Chapter 22.
  • Taylor Clark, "Don't Fear Starbucks," Slate, Dec. 28, 2007.
  • Food Working Conditions
April 24 Th 23. Product Safety and Food Safety
  1. Sh, Chapter 23.

VI. Agriculture and Quality of Life

April 29 T 23. Agricultural Subsidies and Geographical Indications
  1. Daniel Suits, "Agriculture," Chapter 1 in Walter Adams and James Brock, The Structure of American Industry, Pearson, 2005.
  2. The Common Agricultural Policy Explained, European Commission Directorate General for Agriculture, 2004.
  3. Simon Johnson, "Straight Talk - The (Food) Price of Success," Finance & Development (December 2007).
  4. William Adams, "Beer in Germany and the United States," Journal of Economic Perspectives, 20(1), 2006: 189-205.
  5. Tim Josling (2006) "The War on Terroir: Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics 57(3): 337-36
May 1 Th 24. Quality of Life Regulations
  • Jonathan Leape, "The London Congestion Charge," Journal of Economic Perspectives, 20(4), 2006: 157-176.
  • Jerry Muller, "Justus Moser: The Market as Destroyer of Culture," Chapter 4 in The Mind and the Market, Knopf, 2002.
May 6 T 25. Conclusion
THIRD QUIZ