Economics
4470
Industrial Organization, Regulation and Antitrust Economics
Summer 2002
Dr. Bruce A. Seaman
Time and Location: MW: 4:45 - 7:30 P.M.; 227 General Classroom
Administrative: Office: 636 CBA Building (35 Broad Street); Phone: 404-651-2775; Fax: 404-651-4985; email: secobas@aol.com. Office hours are flexible, so it is best to contact me to arrange meetings, or ask me after class..
Catalog Description: The theory of government regulatory and antitrust policies and their effects on the competitive performance of the economy and the behavior of individual firms and industries. Specific topics include an economic and some legal analysis of mergers, price discrimination, predatory strategies, tying contracts, resale price maintenance, cost-benefit studies, product and worker safety, the environment, and deregulation issues in telecommunications, transportation and other industries, with special emphasis on modern landmark cases and the role of economics in affecting public policy.
Prerequisites: Principles of micro-economics is the minimum requirement, but a course in intermediate micro-economics is recommended. Key topics will be reviewed for economics and non-economics majors alike, and the especially complex text material will be simplified in class.
Required Texts:
W. Kip Viscusi, John M. Vernon and Joseph E. Harrington, Jr. (VVH), Economics
of Regulation and Antitrust, Third Edition, MIT Press, 2001.
John Kwoka and Lawrence White (KW), The Antitrust Revolution: Economics, Competition
and Policy, 3rd Edition, Oxford Press, 1999.
Exams: A mid-term exam and a non-comprehensive final exam are scheduled. Discussion based on the cases and the end-of-chapter quest
ions is encouraged. Some sample exam questions and problems will also be discussed in class. Each exam is weighted equally, although borderline grades may be influenced by class participation and improvement shown throughout the semester.
Attendance Policy: University and government assistance policy requires
that attendance be monitored so that students can be withdrawn if they are not
regularly participating in the course. It is therefore imperative that any student
who must miss more than one consecutive class (for health or other legitimate
reasons) notify the instructor so that no student is automatically withdrawn
incorrectly. Spot checks are made of attendance, as well as periodic questions
posed to students in class to encourage class discussion as well as monitor
attendance. Also, class lectures, case discussion and problem solving will frequently
expand beyond the text material and are important for success on exams. You
are responsible for obtaining any material that you have missed. Scheduling
conflicts regarding exams must be resolved in advance of the exam, except in
the case of legitimate emergencies. Missed exams can result in an "F"
for that exam.
Course Schedule
and Assignments: Note that July 12 is the last day to withdraw with a "W."
| Date: | Topics and Assigned Reading: (VVH and KW refer to the texts) |
| 6/17: | Overview
and review of essential economic concepts. Introduction to rationale for regulation and antitrust policies; the relevant history of regulation in the U.S. VVH: Chs. 1 and 2 (appendix optional) |
| 6/19: | The
debate about the social costs of monopoly; X-efficiency; basic industrial
organization concepts; intro to the antitrust laws. VVH: Ch. 3 KW: Introduction (pp. 1-5); and AThe Economic and Legal Context,@ pp. 8-24 |
| 6/24: | The
determinants of relevant economic markets; Horizontal mergers
VVH: Ch.
6 (pp. 143-165) |
| 6/26: | Merger
cases continued
KW: Case
#2: Hospitals: the Carillion case |
| 7/1: | Predation
strategies and monopolization; theory and major cases; the tobacco controversy
VVH: Ch.
9 (pp. 257-284) |
| 7/3: | Price
discrimination issues; Intro to the analysis of collusion and price-fixing; the antitrust debate: should all collusion be per se illegal? VVH: Ch.
9 (284 to end) |
| 7/8: | KW: Case 8: NCAA case; MIDTERM EXAM |
| 7/10: | Return
and discuss exam; Begin discussion of vertical issues in antitrust; tying
contracts; application to Microsoft
VVH: Ch.
8 |
| 7/15: | Case
discussion: vertical issues
KW: Case
14: Jefferson Parish |
| 7/17 | More
extensive analysis of regulatory policy; theories of regulation; Example: the airline case (the effects of de-regulation) VVH: Ch.
10 |
| 7/22: | The
basic natural monopoly problem; important applications: energy (the de-regulation
debate). Discussion of natural gas in Georgia
VVH: Ch.
11 |
| 7/24: | Deregulation
of natural monopolies: the case of telecommunications
VVH: Ch.
15 |
| 7/29: | Intro
to ASocial Regulation:@ health, safety and the environment
VVH: Ch.
19 |
| 7/31: | How
do we Avalue@ a life? How can we apply Acost-benefit@ analysis to issues
of life and death? Product safety application
VVH: Ch.
20 |
| 8/5: | Workplace
health and safety: Do we need government regulation? Review; preparation
for final exam
VVH: Ch.
23 |
| Final Exam: Wednesday, August 7: 5:00-7:00 P.M. (NOTE: slight time difference from regular class). Non-comprehensive exam based only on topics since Midterm Exam. | |