|
A free membership is required to access uploaded content. Login or Register.
McConnellMicro13_Ch12.ppt
|
Uploaded: 4 years ago
Category: Economics
Type: Other
Rating:
N/A
|
Filename: McConnellMicro13_Ch12.ppt
(1.6 MB)
Page Count: 12
Credit Cost: 3
Views: 23
Last Download: N/A
|
Transcript
PART 3 MICROECONOMICS OF
PRODUCT MARKETS
Prepared by Dr. Amy Peng
Ryerson University
© 2013 McGraw-Hill Ryerson Ltd.
Describe what industrial concentration is, and how governments combat it.
Discuss industrial regulation, and how governments deal with it.
Discuss the nature of social regulation, and what its goals are.
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12
*
Exists whenever a single firm or a small number of firms control the major portion of the output of an industry
Competition Policy:
Regulatory Agencies
Competition Law
Merger Types
Competition Law
12.1 Industrial Concentration
Horizontal merger
Vertical merger
Conglomerate merger
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO1
*
Price Fixing
Price Discrimination
Tying Contracts
Recent Cases
Issues of Enforcement: Tradeoffs Among Goals
Balance of trade
Emerging new technologies
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO1
*
Natural Monopoly: two possibilities for improving on outcomes
Public ownership, e.g., Canada Post
Public (industrial) regulation is the preferred option
Public interest theory of regulation
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO2
*
Problems with Industrial Regulation
Costs and Inefficiency
Perpetuating Monopoly
Legal Cartel Theory
e.g., occupational licensing
Deregulation
A wave of deregulation has occurred since the 1970s: airlines, trucking, telecommunications, etc.
Deregulation of the financial industry
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO2
*
The conditions under which goods and services are produced
The impact of production on society
The physical qualities of the goods
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO3
*
Distinguishing Features
Applies to many firms
Intrudes into day-to-day production process
Has expanded rapidly
The Optimum Level of Social Regulation
Marginal Benefit (MB) = Marginal Cost (MC)
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO3
*
In Support of Social Regulation
Notable successes
Confronts serious problems
Expensive but worthwhile
Criticisms of Social Regulation
MC > MB
Laws poorly written, standards difficult to understand
Overzealous regulators
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO3
*
Two Reminders
“There is no free lunch”
“Less government is not always better than more”
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12, LO3
*
Charged May 1998 under the Sherman Act
Accused of having a “Windows” monopoly
District court findings:
Used anticompetitive means
District court remedy
Appeals court ruling
Final settlement
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12
*
12.1 Industrial Concentration
Types of mergers
The Competition Act
12.2 Industrial Regulation
The objective and criticisms of industrial regulation
12.3 Social Regulation
MB = MC
© 2013 McGraw-Hill Ryerson Ltd.
Chapter 12
*
|
|
Comments (0)
|
Post your homework questions and get free online help from our incredible volunteers
|