Economics 224: Regulation and Antitrust: Government and the Market

Professor Christiaan Hogendorn
Spring 2011
Items with # are not up yet.


Prof. Hogendorn's Homepage Course Policies

Syllabus

VHV = W. Kip Viscusi, Joseph E. Harrington, Jr., John M. Vernon, Economics of Regulation and Antitrust, MIT Press, 2005.
Numbered readings are required, other readings are extra.

citeulike for ECON 224: paper ideas

Independent US Goverment Agencies US Government Departments
US DOJ, Antitrust Division US FTC, Bureau of Competition
European Commission, Directorates General

Good index of business/economics articles: ABI/INFORM through Wesleyan Library

I. Introduction

Jan. 20 Th 1. Organization and Key Terms
  1. VHV, Chapter 1
Jan. 25 T 5. The Bureaucracy
  1. Skim VHV, Chapter 2.
Jan. 27 Th University Closed
Feb. 1 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.
Feb. 3 Th Class Canceled
Feb. 8 T 3. Monopoly
  1. VHV, Chapter 4: 79-92 (skim after 85), Chapter 9: 293-299.
  • George J. Stigler, "Perfect Competition, Historically Contemplated," Journal of Political Economy, 65(1), 1957: 1-17.
Feb. 10 Th 4. Externalities
  1. VHV, Chapter 21: 746-760, especially pp. 758-760.

II. Antitrust

Feb. 15 T 6. Antitrust Laws
  1. VHV, Chapter 3.
  • William Safire on origin of expression "Skin in the Game"
  • Massimo Motta, "Competition Policy: History, Objectives, and the Law," Chapter 1 in Competition Policy: Theory and Practice, Cambridge, 2004.
  • Dennis Carlton and Randal Picker, "Antitrust and Regulation," Working Paper, 2006, introduction and sections I and II.
  • Zhang, Vanessa Yanhua and Zhang, Xinzhu, "The Anti-Monopoly Law in China: Where Do We Stand?" . Competition Policy International, 3(2) Autumn 2007
Feb. 17 Th 7. Oligopoly, Collusion, and Antitrust
  1. VHV, Chapter 5, especially pp. 106-112 and pp. 116-121.
Feb. 22 T 8. Market Structure and Strategic Competition
  1. VHV, Chapter 6, pp. 155-173.
Feb. 24 Th 9. Horizontal Antitrust Cases
  1. VHV, Chapter 7, pp. 203-208, 210-217, 219-228 (skipping fig. 7.6).
  • 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.
  • Richard J. Gilbert, "The Role of Potential Competition in Industrial Organization," Journal of Economic Perspectives, 3(3), 1989: 107-127.
March 1 T 10. Vertical Antitrust Cases
  1. VHV, Chapter 8, pp. 235-244, 246-257 (skim model).
  2. VHV, Chapter 9, pp. 332-343.
  • 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

March 3 Th 11. Introduction to Economic Regulation (Including Capture)
FIRST QUIZ: Quiz    #Answers
  1. VHV, Chapter 10, pp. 358-383.
  • 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.
SPRING BREAK
March 22 T 12. Natural Monopoly
  1. VHV, Chapter 11, pp. 401-415.
March 24 Th 13. Electricity and Peak Loads
  1. VHV, Chapter 12, pp. 429-433, 436-442, 447-461.
  • Severin Borenstein, "The Trouble with Electricity Markets: Understanding California's Restructuring Disaster," Journal of Economic Perspectives, 16(1), 2002: 191-211.
March 29 T 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.
March 31 Th 15. Transportation
  1. VHV, Chapter 17.
  • 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.
  • Puffert, Douglas, "The Standardization of Track Gauge on North American Railways, 1830-1890," The Journal of Economic History, 60(4), 2000: 933-960.

IV. Common Carriage, Openness, Neutrality

April 5 T 16. Common Carriers and "Piggybacking"
  1. Eli Noam, "Beyond liberalization II: The impending doom of common carriage, " Telecommunications Policy, 18(4) 1994: 286-294.
April 7 Th 17. Interconnection and Telecommunications
  1. VHV, Chapter 15
April 12 T 18. Wireless Communications
SECOND QUIZ: Quiz    Answers
April 14 Th 19. Internet and Network Neutrality
  1. Christiaan Hogendorn, "Spillovers and Network Neutrality," forthcoming in Gerry Faulhaber, Gary Madden, and Jeffrey Petchey, eds., Regulation and the Performance of Communication and Information Networks, Edward Elgar. (June 18, 2010)
  2. Gerald Faulhaber, "Economics of Net Neutrality: A Review." (March, 2011)

V. Health, Safety, and Environmental Regulation

April 19 T 21. Valuing Life and Other Hard to Value Things
  1. VHV, Chapter 20.
April 21 Th 22. Environmental Regulation
  1. VHV, Chapter 21.
April 26 T 23. Workplace and Consumer Safety
  1. VHV, Chapter 22-23.

VI. Other Types of Regulation

April 28 Th 24. Too Big to Fail
May 3 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
May 5 Th 26. Congestion
  • 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 12 Th Registrar's Final Exam Time
Third Quiz
2:00PM - 5:00PM (should take only 45 minutes)