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Economics courses carry social science credit.
ECON 350-CN : Monopoly, Competition and Public Policy
Description
This course focuses on a particular market failure - monopoly -
in the context of antitrust law, public utility regulation, network
effects, and intellectual property. First, profit-seeking firms may
try to reduce competition through price discrimination, resale
price maintenance, entry deterrence, predation, horizontal mergers,
vertical integration, or collusion. We will use economic theory and
landmark legal cases to study the purpose and development of
antitrust law, which is meant to reduce the adverse effects of
anti-competitive business practices. Next, large fixed costs of
building and maintaining a physical network may generate natural
monopolies in markets for electric power, cable television, natural
gas, and water. We will explore the challenges regulators face when
they attempt to apply market controls such as price caps so an
essential service remains affordable. We will also ponder the
proper role of government in today's digital economy, which
features a number of winner-take-all markets, in which bandwagon
effects result in convergence to a single operating system,
recording technology, or social network. Finally, society might be
willing to trade short-term welfare loss for long-term gains by
granting temporary monopolies (e.g., patents or copyrights) to
provide an incentive to innovate. We will analyze the ideal scope
of artificial monopoly rights and the natural tension between
intellectual property and antitrust law. Throughout the course we
will explore the general topic of regulation and industry cases,
both current and historical.
Prerequisites: ECON 281-CN, 310-A, 310-B.
Winter 2024 | ||||
Start/End Dates | Day(s) | Time | Building | Section |
01/03/24 - 03/16/24 | Th | 6:15 – 9:15 p.m. | University Hall 101 | 66 |
Instructor | Course Location | Status | CAESAR Course ID | |
Hornsten, James | Evanston Campus | Open |