这是一篇来自美国的关于竞争政策和法规的经济学作业代写
- Course Organisation
Lecture organisation
▶ Lecture recording + Lecture Online Quiz released on weekend for week to come
▶ Go through lecture, then take quiz on blackboard (quiz not assessed)
▶ On Thursdays 10am (room 63-348): summary, review of main concepts and Q&A (recordings will be made available on blackboard)
Tutorial organisation
▶ Tutorial questions released on weekend for week to come
▶ Parallel tutorial sessions on campus and online (see time table on Blackboard), starting week 2
▶ You will also be provided with a recorded tutorials for convenience
▶ make use of consultation times of tutors (see timetable on Blackboard) Learning Material (all posted on Blackboard):
▶ Lecture slides, Tutorial problems (+solutions), Additional exam exercises, lecture online quizzes on blackboard, Readings, Lecture Recordings
Assessment:
▶ case study essay: 25%
▶ three Blackboard online tests each worth 25%
▶ dates for tests and essay
▶ once you start online test, you have 6 hours to complete
▶ questions include MCQ, problem solving and case analysis, some questions require file submission
Case Discussion: Essay
topics/cases provided in week 3
essay length: 1,000 words (excluding references)
due date: Monday, June 5, 5pm (submit electronically on blackboard) criteria for grading the essay include:
▶ Case description (40%)
▶ Application of economic theory (40%)
▶ Presentation and writing (20%)
Competition Policy Pop Quiz and Guest Lecture lecture in last week of semester (May 25):
▶ Competition Policy Pop Quiz with prizes!!!
▶ guest lecture ACCC Executive Director on digital platforms and competition policy
What do you learn in this course?
microeconomic concepts of competition policy and regulation review of basic Industrial Organisation and Game Theory concepts discussion of classic and recent theoretical models of competition policy and regulation application of theory to cases and real world examples models to understand fundamental principles behind economic concepts course should give you solid, up-to-date understanding of competition policy and regulation issues foundations for analysis as competition economists for regulatory bodies and consultancies
Requirements
good understanding of second year level of microeconomics you should like and be able to work with quantitative models we use graphical intuition with mathematical analysis (algebra,calculus)
you should know:
▶ calculus: differentiation rules
▶ algebra: solve systems of two equations and two unknowns
▶ optimisation theory: optimisation with constraints using Lagrange be able to make connections between theory and its application in real-world cases
if you are not comfortable with the maths requirements, you will struggle and not be able to get the full learning experience from this course!
Course outline:
- Introduction
- Basic Concepts for Regulation and Competition Policy (weeks 1-2)
⋆ demand and cost analysis, monopoly, game theory, oligopoly
- Collusion and Cartel Policy (weeks 3-4)
- Monopolisation Practices (weeks 5-6)
- Mergers and Acquisitions Policy (weeks 7-8)
- Regulation (weeks 9-13)
⋆ natural monopoly
⋆ optimal price regulation
⋆ incentive regulation
⋆ bottleneck access pricing
- Competition Policy versus Regulation
Starting Point: Free markets may not achieve efficient outcomes due to market failures, strategic behaviour, barriers to entry Definition: Competition Policy and Regulation are set of policies and laws that foster consumer surplus or welfare in cases where normal competition is not possible or restricted.
- Introduction to Competition Policy
3.1 Origins in the United States
NPR Podcast: https://www.npr.org/sections/money/2019/02/15/695131832/antitrust-1-standard-oil
1890 Sherman Act in US
Section 1 prohibits contracts, combinations and conspiracies which restrain trade and prescribes imprisonment and fines for violation Section 2 prohibits monopolization, attempts to monopolize and conspiracies to monopolize any part of trade and commerce
– Sherman Act has almost reached constitutional stature in US
– no other country has equally broad substantive provisions
– relies heavily on common law method of judicial interpretation
– “evolutionary” nature right from the beginning
– oscillating between rule of reason and per se rules
Reason for Sherman Act
– reaction to industrialization and rise of huge corporations
– economies of scale and scope in second half of 19th century due to improvement in transportation and communication innovations in metallurgy, chemicals, energy more advanced capital markets
– no enforcement until 1897 (price fixing of trust of 18 railways Trans-Missouri Freight Association)
– Dr. Miles vs Park & Sons (1911) turned in per se prohibition of (minimum) resale price maintenance clause (still valid today)
– 1911 Standard Oil split into 34 separate companies because of monopolisation (predatory) practices
Per Se Activism until early 70s
– vigorous antitrust enforcement to restrain large firms and de-concentrate industries
– suspicion of corporate giants: fear of single firm dominance
– simplify burden of proof for government: per se rules
– per se prohibition of tie-in sale/bundling in International Salt (1947)
– per se prohibition of exclusive territories in Schwinn (1967)
– aluminium ingot producer Alcoa (1945) found guilty of monopolization when increasing market share from 90% to 91%
– “David vs Goliath”: Supreme Court defended small against big companies in controversial decisions (e.g. Utah Pie 1967)