REVIEW QUESTIONS
- What is a corporate merger? What is an acquisition?
- What is the goal of antitrust policies?
- How do we measure a four-firm concentration ratio? What does a high measure mean about the extent of competition?
- How do we measure a Herfindahl-Hirschman Index? What does a low measure mean about the extent of competition?
- Why can it be difficult to decide what a “market” is for purposes of measuring competition?
- What is a minimum resale price maintenance agreement? How might it reduce competition and when might it be acceptable?
- What is exclusive dealing? How might it reduce competition and when might it be acceptable?
- What is a tie-in sale? How might it reduce competition and when might it be acceptable?
- What is predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal?
- If public utilities are a natural monopoly, what would be the danger in deregulating them?
- If public utilities are a natural monopoly, what would be the danger in splitting them into a number of separate competing firms?
- What is cost-plus regulation?
- What is price cap regulation?
- What is deregulation? Name some industries that have been deregulated in the United States.
- What is regulatory capture?
- Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers?
