Economics 224: Regulation and Antitrust: Government and the Market

Professor Christiaan Hogendorn
Fall 2015
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Sh = Roger Sherman, Market Regulation, Pearson/Addison Wesley, 2008.
Numbered readings are required, other readings are extra.

citeulike for ECON 224: paper ideas

US Goverment Agencies US DOJ, Antitrust Division
Office of Information & Regulatory Affairs US FTC, Bureau of Competition

European Commission, Directorates General
Good index of business/economics articles: ABI/INFORM through Wesleyan Library

I. Introduction

Sept. 8 T 1. Organization and Key Terms
  • Sh, Chapter 1
Sept. 10 Th 2. The Bureaucracy
  1. W. Kip Viscusi, Joseph E. Harrington, Jr., John M. Vernon, Economics of Regulation and Antitrust, MIT Press, 2005, Chapter 2.
Sept. 15 T 3. Cost Curves and Economies of Scale
  1. Hal Varian, "Cost Curves," Chapter 21 in Intermediate Microeconomics, Norton, 5th edition.
  • Miller, R. A. (2001). "Firms' cost functions: A reconstruction." Review of Industrial Organization, 18(2), 183-200.
  • 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.
Sept. 17 Th 4. Monopoly
  1. Hal Varian, "Monopoly," Chapter 24 in Intermediate Microeconomics, Norton, 5th edition.
Sept. 22 T 5. Externalities
  1. Pindyck and Rubinfeld, "Externalities and Public Goods," Chapter 18 in *Microeconomics.*

II. Antitrust

Sept. 24 Th 6. Firm Boundaries and Market Structure
  1. W. Shepherd and J. Shepherd, Chapters 3 and 8 in The Economics of Industrial Organization, Waveland Press.
Sept. 29 T FIRST QUIZ and 7. Oligopoly, Collusion, and Antitrust
    Quiz    Answers
  1. Stephen Martin, "Cournot Oligopoly," Sections 2.2.1-2.2.3 in Industrial Organization: A European Perspective, Oxford, 2001.
Oct. 1 Th 8. Antitrust Laws
  1. Massimo Motta, "Competition Policy: History, Objectives, and the Law," Chapter 1 in Competition Policy: Theory and Practice, Cambridge, 2004. (especially first part)
Oct. 6 T 9. Horizontal Antitrust Cases
  1. Patrick DeGraba and Gregory Rosston,, "The Proposed Merger of AT&T and T-Mobile: Rethinking Possible (2011)," Case 1 in John Kwoka and Lawrence White, eds., The Antitrust Revolution, 6th edition, Oxford, 2014.
  • Dalton, James A., and Louis Esposito. "Standard oil and predatory pricing: Myth paralleling fact." Review of Industrial Organization 38.3 (2011): 245-266.
  • Richard J. Gilbert, "The Role of Potential Competition in Industrial Organization," Journal of Economic Perspectives, 3(3), 1989: 107-127.
Oct. 8 Th 10. Vertical Antitrust Cases
  1. W. Kip Viscusi, Joseph E. Harrington, Jr., John M. Vernon, "Vertical Mergers and Vertical Restraints," Chapter 8 in Economics of Regulation and Antitrust, MIT Press, 2005.
  • Michael Riordan and Stephen Salop, "Evaluating Vertical Mergers: A Post-Chicago Approach," Antitrust Law Journal, Winter 1995.
Oct. 13 T 11. Antitrust and Technological Change
  1. Crandall, R. W., & Jackson, C. L. (2011). Antitrust in high-tech industries. Review of Industrial Organization, 38(4), 319-362.
  2. Brennan, T. J. (2011). “High-Tech” Antitrust: Incoherent, Misguided, Obsolete, or None of the Above? Comments on Crandall-Jackson and Wright. Review of Industrial Organization, 38(4), 423-433.

III. Economic Regulation

Oct. 15 Th 12. Economic Regulation and Natural Monopoly
Oct. 20 T 13. Electricity and Peak Loads
Oct. 22 Th 14. Franchises
  1. VHV, Chapter 13.
  • 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.
Oct. 29 Th 15. Transportation
  1. Sherman, Chapter 16.
  • Russell Pittman, "The Economics of Railroad 'Captive Shipper' Legislation," Administrative Law Review, Volume 62, Number 3, Summer 2010.
  • 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.
  • Perelman, M. (1994). Retrospectives: fixed capital, railroad economics and the critique of the market. The Journal of Economic Perspectives, 189-195.
  • Pittman, R. (2005). Structural separation to create competition? The case of freight railways. Review of Network Economics, 4(3).
  • Modernizing Freight Rail Regulation TRB Special Report 318, 2015.

IV. Common Carriage, Openness, Neutrality

Nov. 3 T SECOND QUIZ and 16. Common Carriers and "Piggybacking"
  1. Eli Noam, "Beyond liberalization II: The impending doom of common carriage, " Telecommunications Policy, 18(4) 1994: 286-294.
Nov. 5 Th 17. Interconnection and Telecommunications
  1. Tim Wu Chapters 3 and 18 in The master switch: The rise and fall of information empires. Knopf, 2010.
  • Matthew Lasar, "How AT&T conquered the 20th century," Ars Technica, September 1, 2011.
  • Milton Mueller Jr. Universal Service: Competition. Interconnection, and Monopoly in the Making of the American Telephone System (Cambridge, 1997).
Nov. 10 T 18. Wireless Communications
Nov. 12 Th 19. Internet and Network Neutrality
  1. Jon Brodkin "FCC votes for net neutrality, a ban on paid fast lanes, and Title II," Ars Technica, February 26, 2015.
  • Christiaan Hogendorn, "Spillovers and Network Neutrality," in Gerry Faulhaber, Gary Madden, and Jeffrey Petchey, eds., Regulation and the Performance of Communication and Information Networks, Edward Elgar. (June 18, 2010)
  • Gerald Faulhaber, "Economics of Net Neutrality: A Review." (March, 2011)
  • The FCC, Internet Service Providers, and Access Charges, an FCC fact sheet from the the age of dial-up.
  • Jon Brodkin, "One big reason we lack Internet competition: Starting an ISP is really hard," Ars Technica, April 6, 2014.

V. Health, Safety, and Environmental Regulation

Nov. 17 T 20. Valuing Life and Other Hard to Value Things
  1. Ashenfelter, O. (2006). Measuring the Value of a Statistical Life: Problems and Prospects. The Economic Journal, 116(510), C10-C23.
Nov. 19 Th 21. Environmental Regulation
  1. Heyes, A. (2009). Is environmental regulation bad for competition? A survey. Journal of Regulatory Economics, 36(1), 1-28.
Nov. 24 T 22. The DMCA
  1. David Kravetz, "How the DMCA Made YouTube," Ars Technica, April 22, 2015.
  2. Robert Levine, Chapter 1 in Free Ride, Doubleday, 2011.
Dec. 1 T 23. Cybersecurity
  1. Rao, J. M., & Reiley, D. H. (2012). The Economics of Spam. The Journal of Economic Perspectives, 87-110.

VI. Other Types of Regulation

Dec. 3 Th 24. Too Big to Fail
Dec. 8 T 25. Geographical Indications
  1. Tim Josling (2006) "The War on Terroir: Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics 57(3): 337-36
  • Third Quiz