Economics 335: Economics of Regulation and Antitrust Syllabus (2009)

Required Texts: Required Text: W. Kip Viscusi, John M. Vernon, and Joseph E. Harrington, Jr. Economics of Regulation and Antitrust 4th Ed., Cambridge, Mass.: MIT Press, 2005. (Abbreviated VVH)

Additional readings will be assigned during the course of the semester. Papers referenced in the syllabus will be on reserve in the library. To access the articles, go to the Milner Library Website, Reserve Readings, Enter On-line Catalog, Course Reserves, and choose ECO 335.

The final grade will be based on the following point scheme: EXAM #1 100 points EXAM # 2 100 points Problem Sets 100 points Class Participation 50 points Writing Assignment 50 points Final 100 points TOTAL 500 points

The following point scale will be used to evaluate your overall performance: Grade Total Points A B C D 450 or above 400 or above 350 or above 300 or above

less than 300

Keys to Success

This course has a large volume of reading. Some of the reading is technical, focused on economic theory and some of the reading is narrative, focused on actual case studies. It is imperative that you read the assigned material in both areas. Because the class is discussion oriented, you will not maximize your classroom learning if you have not read the material in advance. In addition, participating in classroom discussion will help you clarify your own thinking as we review cases. As you listen to others' economic reasoning and express your own ideas, true learning takes place. The goal of this course is not to memorize a set of facts the night before the exam but to develop economic reasoning in the area of regulation and antitrust. This cannot be done by cramming the night before the exam!! Finally, do the problem set independently so that you know not only the correct answer but also how to arrive at the correct answer. Many exam questions will be similar to problem set questions, so view problem sets as practice exams.

If, after reading the assigned material, participating in class discussion and working independently on problem sets, you are not achieving the level of success that you expect of yourself, please come to see me regularly during office hours. My goal as your professor is to see you succeed. If you are doing your best to learn, I will do my best to help you learn. Course Outline

August 21: Why Regulate? August 23: Why Regulate? August 28: Monopoly August 30: Monopoly cases September 4: LABOR DAY September 6: Monopoly cases (Problem Set: #1)

September 11: Oligopoly September 13: Oligopoly cases (Problem Set: #2) September 18: Merger September 20: Merger cases / Review #3 Paper Topic September 25: Exam #1 September 27: Price Discrimination October 2: Price Discrimination cases October 4: Vertical Restraints (Problem Set: #4) October 9: Vertical Restraints cases October 11: Natural Monopoly October 16: Natural Monopoly October 18: Optimal Pricing (Problem Set: #5) October 23: Optimal Pricing October 25: Optimal Pricing (Problem Set: #6) October 30: Optimal Pricing / Review November 1: Exam #2 November 6: Rate of Return Regulation November 8: Rate of Return Regulation November 13: Fairness November 15: Fairness (Problem Set: #7) November 20-22: NO CLASS - THANKSGIVING November 27: Telecommunications Paper Due November 29: Telecommunications December 4: Electricity December 6: Natural Gas December 11: Final 7:50 am - MONDAY