Economics of Antitrust Law and Regulation
Economics College of Family, Home, and Social Sciences
Economic analysis of reasons for - and effects of - antitrust laws and regulation in selected areas, including utilities, telecommunications, transportation, energy, health, safety, and the environment.
Econ 420 students will be able to
Demonstrate basic familiarity with the provisions of the principal Federal antitrust statutes, including the Sherman Act, the Clayton Act, the FTC Act, the Robinson-Patman Act, and the Hart-Scott-Rodino Act. Evaluate the likely effects of Section 1 of the Sherman Antitrust Act using monopoly, Cournot, Stackelberg, and Bertrand models of non-cooperative behavior among a small number of rival firms. Evaluate the likely effects of Section 2 of the Sherman Antitrust Act using simple analytical models of predation, exclusion, tying, bundling. Evaluate the likely effects of laws limiting price discrimination, including the Robinson-Patman Act, using simple analytical models of price discrimination. Evaluate the likely effects of Section 7 of the Clayton Act and the HRS Act using simple analytical models of mergers. Evaluate public regulation of monopolies as an alternative to relying on antitrust law using simple analytical models of rate-of-return regulation, nonlinear pricing and peak load pricing. Synthesize the relevant economics and legal literature, including Federal and Supreme Court rulings, via a substantial survey paper on a specific antitrust issue.