Regulation (Micro)

Aerial Predators? (6/22/2001)

Are major airlines that temporarily lower their fares to squeeze out their low-fare niche-market startup competitors guilty of predatory pricing?

Keywords: aerial predators, American Airlines, antitrust, antitrust law, average variable cost, entrants, entry, fixed costs, leader, marginal cost, monopoly, network, predatory pricing, rivals

Bundle of Sorrows (6/22/2006)

Merger between firms making complementary components might be anti-competitive if the merged company can price their bundled products lower than the independent component makers.

Keywords: antitrust regulation, bundle, competition, complementary goods, components, discount, European Commission, GE, Honeywell, Justice Department, merger, pricing, profit maximization

Cost-efficient pollution control (11/2/2011)

Pollution tax could lead to lower-cost pollution reduction than a uniform pollution reduction quota.

Keywords: cost efficiency, pollution control, pollution tax, quota

Airlines deregulation has allowed more competitive discounters to grow at the expense of high-cost traditional hub-and-spokes airlines. But instead of exiting the market, the unprofitable traditional airlines hang on for dear life.

Keywords: airfares, airlines, Chapter 11 bankruptcy, deregulation, discounter, leasing GE, market entry, market exit, regulation

Licensed to Kill? (1/15/2005)

One-size-fits-all occupational licensing often makes entry difficult for the less educated and basic services too expensive for low-income consumers.

Keywords: do-it-yourself service, electrocution, graded license, occupational licensing, regulation, service quality

Market Intervention and Regulation (7/7/2006)

Market regulation may be justified under some circumstances to increase economic efficiency.

Keywords: antitrust, asymmetric information, commons goods, cost effectiveness, intervention, lemons, market, pollution, prescription drugs, public goods, Regulation

Riskless Insurance (2/27/2007)

Regulatory protection has led to legal price fixing in the title insurance oligopoly at the expense of home buyers.

Keywords: kickbacks, mortgage lenders, oligopoly, premium, price fixing, rebate, regulation, title insurance, title search

Strange Bedfellows! (6/22/2001)

Government regulation might protect the tobacco industry from ruinous lawsuits.

Keywords: cigarettes, discount cigarettes, FDA, Florida, Philip Morris, protection, regulation, tobacco industry, tobacco settlement

The Orphan Chase (1/16/2006)

Orphan drugs are profitable because of third-party health insurance and favorable regulatory oversight.

Keywords: charity, Gaucher disease, generic, Genzyme, orphan drug, price discrimination, regulation

The Trustbusters' New Tools (8/31/1999)

Econometric analysis of store checkout scanners' data can directly predict whether a proposed merger will raise prices.

Keywords: American Airlines, anticompetitive, antitrust, British Airways, Coca-Cola, Continental Baking, Federal Trade Commision, FTC, Herfindahl index, Interstate Bakeries, market concentration, merger, Office Depot, PepsiCo, Staples

Too Much Vitamin C? (6/22/2006)

Legacy habit of central planning has led to antitrust charges against Chinese vitamin C oligopoly.

Keywords: antitrust, cartel, price fixing, regulation, vitamin C

Vitamin Inc. (3/22/2005)

Mature oligopoly with a few large producers of homogeneous commodities is driven to output and price fixing to increase their profit.

Keywords: antitrust, BASF, cartel, commodities, homogeneous products, Justice Department, lysine, oligopoly, price fixing, Rhone-Poulenc, Roche, vitamin

Yellow Cabs, Red Tape (6/22/2006)

Transferable fixed-supply permanent taxi licenses result in high taxi fare and poor service with only normal return to current license owners.

Keywords: capitalization, dissipation, economic rent, medallion, transferable taxi licenses