Market Regulation

gives students the economic intuition to analyze the history of antitrust and regulation, diagnose current corporate strategy, and evaluate possible policy recommendations. Roger Sherman grounds modern examples in historical context and develops thought-provoking discussions to motivate students from many different majors. http://www.dropshippers.co.za/

The structure of the text can easily be adapted for use in a variety of courses. Three main sections—antitrust, industry regulation, and social regulation—present the basic theories. The industry regulation chapters (Part II) are self-contained for flexibility, covering specific industries such as communications, postal service, and energy. http://www.dropshippers.co.za/

“Roger is one of those scholars who is a true credit to the academic world. Not only is he a fine researcher but he has been a great positive influence on graduate students and colleagues over the years. His book is a comprehensive treatment of regulation by one of the best qualified to write such a book.” http://www.dropshippers.co.za/

—Michael Crew, Rutgers University http://www.dropshippers.co.za/

Table of Contents

INTRODUCTION

1 Introduction to Market Regulation

• 1.1 Governmental Market Regulation 1.2 The Context of Market Regulation 1.3 Law and Politics
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2 Competition as Market Regulator

2.1 The Firm's Production Costs 2.2 Competition as Regulator 2.3 The Economic Welfare Goal of Market Regulation http://www.dropshippers.co.za/

3 Problems for Competition as Regulator

3.1 Entry and Exit Barriers 3.2 Monopoly 3.3 Differentiated Products 3.4 Externality 3.5 Imperfect Information 3.6 Transaction Costs http://www.dropshippers.co.za/

PART I THE REGULATION OF COMPETITION

4 Focus of the Law: The Modern Business Firm

4.1 The Business Firm and the Market 4.2 The Goal of the Firm 4.3 Corporate Finance 4.4 Hierarchy and Control 4.5 Corporate Mergers 4.6 Vertical Integration and Vertical Restraints http://www.dropshippers.co.za/

5 Market Structure

5.1 Market Structure 5.2 Duopoly and Oligopoly 5.3 Entry and Conditions 5.4 Concentration Measures 5.5 Empirical Evidence http://www.dropshippers.co.za/

Appendix 5.1 Cournot’s Solution to Duopoly

Appendix 5.2 Cournot from Monopoly to Many Firms http://www.dropshippers.co.za/

Appendix 5.3 Entry in the Cournot Model

Appendix 5.4 Stackelberg’s Leader-Follower Solution http://www.dropshippers.co.za/

6 Market Strategy

6.1 The Tools of Strategy 6.2 Price Competition Among Few Firms 6.3 Non-Price Competition 6.4 Advertising http://www.dropshippers.co.za/

7 Market Innovation

7.1 Intellectual Property and Technological Change 7.2 Appropriating Gains from Innovation 7.3 Patents and the Appropriability of Gains 7.4 Market Structure and Incentive for Innovation 7.5 Patent Races and Other Dynamic Effects of Competition 7.6 The Internet as an Example of Major Innovation http://www.dropshippers.co.za/

8 The Origin and Development of Antitrust Law

8.1 The Beginnings of Antitrust Policy 8.2 The Sherman Act 8.3 The Clayton and Federal Trade Commission Acts 8.4 Enforcement Agencies and Remedies 8.5 Should Courts Oppose Monopoly Conduct or Monopoly Power? 8.6 Government Control of Mergers 8.7 Unfair and Deceptive Practices http://www.dropshippers.co.za/

Appendix 8.1 Horizontal Merger Guidelines

Appendix 8.2 Time Line for Major Antitrust Legislation http://www.dropshippers.co.za/

9 Applications of Antitrust Law

9.1 The Firm and Market Structure 9.2 The Firm and Market Strategy 9.3 The Firm and Market Innovation http://www.dropshippers.co.za/

PART II THE REGULATION OF INDUSTRIES

10 Industry Regulation

10.1 When Competition Fails to Regulate 10.2 Competitive Markets or Government Intervention? 10.3 The Transformation of Regulated Industries 10.4 Economic Welfare Revisited http://www.dropshippers.co.za/

11 Pricing Principles

11.1 Peak-Load Pricing 11.2 Ramsey Pricing 11.3 Nonuniform Pricing 11.4 Access Pricing http://www.dropshippers.co.za/

Appendix 11.1 Socially Optimal Pricing

Appendix 11.2 Long-Run Marginal-Cost Pricing http://www.dropshippers.co.za/

Appendix 11.3 Axiomatic Pricing

12 Institutions of Industry Regulation

12.1 Industry Regulatory Agencies 12.2 Regulated Enterprises 12.3 Rate-of-Return Regulation 12.4 Designing a Regulatory Mechanism 12.5 Price-Cap Regulation 12.6 The Role of Access in Transforming Regulated Industries http://www.dropshippers.co.za/

Appendix 12.1 Rate-of-Return Regulation and Its Origins

13 Postal Service

13.1 The Budget-Constrained Public Enterprise 13.2 Creation of the United States Postal Service 13.3 Maximizing Welfare or Expenditure 13.4 Ramsey Pricing in the United States Postal Service 13.5 Unbundling Postal Service Functions http://www.dropshippers.co.za/

Appendix 13.1 Budget vs. Welfare Maximizing Prices

Appendix 13.2 Pricing Guidelines of the Postal Reorganization Act http://www.dropshippers.co.za/

14 Communications Services

14.1 The Economics of Telephone Networks 14.2 Early Regulation of the United States Telephone Industry 14.3 The Modification of Final Judgment 14.4 The Telecommunications Act of 1996 14.5 New Sources of Telecommunications Competition http://www.dropshippers.co.za/

Appendix 14.1 Double Double Marginalization in a Telephone Network

Appendix 14.2 Tariff Wars After Interconnection http://www.dropshippers.co.za/

15 Communication for News and Entertainment

15.1 Network Compatibility in Broadcasting 15.2 Broadcasting as a Public Good 15.3 Cable Service 15.4 Convergence of Broadcast, Cable and Telephone, and the Telecommunications Act of 1996 http://www.dropshippers.co.za/

16 Transportation

16.1 Railroad Transportation 16.2 Truck Transportation 16.3 Bus Travel and Urban Transportation 16.4 Pricing the Road Network 16.5 Air Transportation http://www.dropshippers.co.za/

Appendix 16.1 Major Railroad Legislation

Appendix 16.2 Major Federal Truck, Bus, and Highway Legislation http://www.dropshippers.co.za/

Appendix 16.3 Major Federal Airline Legislation

17 Energy

17.1 Coal and Nuclear Power 17.2 Oil 17.3 Natural Gas 17.4 Renewable Energy http://www.dropshippers.co.za/

18 Electricity

18.1 The Electricity Industry 18.2 Organization of the Electricity Industry 18.3 Markets for Power 18.4 Competition in a Restructured Electricity Industry http://www.dropshippers.co.za/

Appendix 18.1 A Transmission Grid Illustration of Congestion Cost

Appendix 18.2 Illustration of Restructured Electricity Industry http://www.dropshippers.co.za/

PART III SOCIAL REGULATION

19 Social Regulation of Markets 19.1 Externalities 19.2 Imperfect Information 19.3 Fairness for Workers 19.4 Consequences of Firm Failure http://www.dropshippers.co.za/

20 Pursuing Social Regulation

20.1 Benefit-Cost Analysis 20.2 Valuing Nonmarket Objects 20.3 Command and Control Means of Social Regulation 20.4 Tax-Subsidy and Property-Right Means of Social Regulation 20.5 Information as Regulation http://www.dropshippers.co.za/

21 Environmental

Protection

21.1 Air, Water, and Land Pollution 21.2 Command-and-Control Means of Protecting the Air 21.3 Pollution-Right Means of Protecting the Air 21.4 Protecting Water and Land http://www.dropshippers.co.za/

Appendix 21.1 National Ambient Air Quality Standards

22 Worker Protection

22.1 Protection in Markets 22.2 Employment Discrimination Laws 22.3 Occupational Safety and Health Laws 22.4 Retirement Security Laws http://www.dropshippers.co.za/

23 Consumer Protection

23.1 The Courts and Product Liability 23.2 State Laws 23.3 The Food and Drug Administration 23.4 The National Highway Traffic Safety Administration 23.5 The Consumer Product Safety Commission 23.6 The Federal Trade Commission on Unfair and Misleading Claims 23.7 Consumer Protection for Securities Trading http://www.dropshippers.co.za/

24 Protecting against Effects of Firm Failure

24.1 Banking Industry Regulation 24.2 Insurance Industry Regulation 24.3 Firm Failure in the Twenty-First Century http://www.dropshippers.co.za/

• References
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