ECONOMICS OF REGULATION AND ANTITRUST FOURTH EDITIONPDF电子书下载

1 Introduction 1

The Rationale for Regulation and Antitrust Policies 2

Antitrust Regulation 3

The Changing Character of Antitrust Issues 4

Reasoning behind Antitrust Regulations 5

Economic Regulation 5

Development of Economic Regulation 6

Factors in Setting Rate Regulations 6

Health，Safety，and Environmental Regulation 8

Role of the Courts 9

Criteria for Assessment 9

Questions and Problems 11

Recommended Reading 11

Appendix 11

2 The Making of a Regulation 13

State versus Federal Regulation：The Federalism Debate 14

Advantages of Federalism 15

Advantages of National Regulations 16

Product Labeling Example 17

The Overlap of State and Federal Regulations 18

The Character of the Rulemaking Process 19

The Chronology of New Regulations 19

Nature of the Regulatory Oversight Process 24

The Nixon and Ford Administrations 24

The Carter Administration 25

The Reagan Administration 27

The Bush Administration 28

The Clinton Administration 28

The George W.Bush Administration 28

Regulatory Reform Legislation 28

Benefit-Cost Analysis 30

Discounting Deferred Effects 33

Present Value 34

The Criteria Applied in the Oversight Process 36

Regulatory Success Stories 36

Promotion of Cost-Effective Regulation 37

Distortion of Benefit and Cost Estimates 38

The Regulatory Role of Price and Quality 39

The Impact of the Oversight Process 39

The Cost of Regulation 40

Other Measures of the Size of Regulation 40

The Character of Regulatory Oversight Actions 45

What Do Regulators Maximize？ 48

The Capture Theory 48

Other Theoryes of Influence Patterns 49

Comprehensive Models of Regulatory Objectives 49

Conclusion 51

Questions and Problems 51

Appendix：Trends in Regulatory Agency Budgets and Staff 52

Ⅰ ANTITRUST 59

3 Introduction to Antitrust 61

Industrial Organization 62

Structure 63

Conduct 66

Performance 66

Government 68

Antitrust 69

Federal Antitrust Laws 69

Enforcement and Remedies 71

Exemptions from Antitrust 75

Summary and Overview of Part Ⅰ 76

Appendix：Antitrust Statutes 76

Sherman Act 76

Clayton Act 77

Federal Trade Commission Act 78

4 Efficiency and Technical Progress 79

Economic Efficiency 79

Partial Equilibrium Welfare Tools 80

Monopoly-versus-Competition Example 82

Oil Industry Application 84

Some Complications 85

X-Inefficiency 88

Monopoly-Induced Waste 89

Estimates of the Welfare Loss from Monopoly 90

Technical Progress 93

Importance of Technological Change 93

A Model of R ＆ D Rivalry 95

Summary 98

Questions and Problems 99

5 Oligopoly，Collusion，and Antitrust 101

Game Theory 101

Example 1：Advertising Competition 101

Example 2：Compatibility of Standards 103

The Strategic Form of a Game 104

Nash Equilibrium 105

Oligopoly Theory 106

The Cournot Solution 106

Other Models of Oligopoly 112

Product Differentiation 113

Collusion 116

A Theory of Collusion 117

Challenges to Collusion 121

Collusion in Practice 128

Antitrust Law and Policy toward Price Fixing 134

Economic Analysis of Legal Categories 135

Per Se Rule Cases 137

Tacit Collusion 140

Enforcement Policy 144

Summary 150

Questions and Problems 151

Appendix 153

Game Theory：Formal Definitions 153

6 Market Structure and Strategic Competition 155

Market Structure 155

Concentration 155

Scale Economies 162

Entry Conditions 164

Dominant Firm Theory 174

Static Analysis 174

Dynamic Analysis：Limit Pricing 177

Strategic Competition 182

Limit Pricing 183

Investment in Cost-Reducing Capital 190

Raising Rivals’ Costs 194

Preemption and Brand Proliferation 194

Summary 198

Questions and Problems 198

7 Mergers 203

Antitrust Laws and Merger Trends 204

Reasons for Mergers 207

Monopoly 207

Economies 207

Reducing Management Inefficiencies 208

Horizontal Mergers 210

Benefits and Costs 210

Effects of Airline Mergers 219

Cases 220

U.S.Department of Justice Merger Guidelines 225

Conglomerate Mergers 229

Potential Benefits 229

Anticompetitive Effects and Cases 230

Summary 232

Questions and Problems 233

8 Vertical Mergers and Vertical Restraints 235

Vertical Mergers 236

Benefits 237

Anticompetitive Effects 241

Commitment and the Restoration of Market Power 246

Raising Rivals’ Costs 248

Antitrust Law and Policy 253

Historical Development 254

Time Warner and Turner 255

Vertical Restraints 257

Exclusive Dealing 258

Antitrust Law and Policy 263

Tying 266

Modern Theories of Leveraging 275

Manufacturer-Retailer Restraints 282

Summary 288

Questions and Problems 289

9 Monopolization and Price Discrimination 293

Establishing Monopolization Claims 294

Measuring Monopoly Power 294

Assessing Intent to Monopolize 298

Development of Antitrust Case Law 299

1890-1940：Standard Oil and United States Steel 299

1940-1970：Alcoa and United Shoe Machinery 300

1970 to Present：Kodak，IBM，Microsoft，and Others 303

Predatory Pricing 305

Theories of Predatory Pricing 309

Efficiency Rationales 316

Antitrust Policy 317

The Areeda-Turner Rule and Other Single-Parameter Rules 317

The Brooke Case and the Two-Tier Rule 319

Recent Developments 321

Refusal to Deal and the Essential Facilities Doctrine 322

Essential Facilities Doctrine 323

Intellectual Property Rights 324

Kodak and Monopoly Power in Aftermarkets 326

Microsoft Case 332

Network Externalities 332

Antitrust Case 336

Tying and Monopolization of the Browser Market 338

Maintenance of Monopoly in the Operating Systems Market 339

Remedies and Harm 342

Price Discrimination and the Robinson-Patman Act 343

Systematic Discrimination 344

Unsystematic Discrimination 349

Cases 350

Summary 352

Questions and Problems 352

Ⅱ ECONOMIC REGULATION 355

10 Introduction to Economic Regulation 357

What Is Economic Regulation？ 357

Instruments of Regulation 358

Control of Price 358

Control of Quantity 359

Control of Entry and Exit 359

Control of Other Variables 360

Brief History of Economic Regulation 362

Formative Stages 362

Trends in Regulation 364

The Regulatory Process 369

Overview of the Regulatory Process 369

Regulatory Legislation 371

Independent Regulatory Commissions 371

Regulatory Procedures 373

The Theory of Regulation 375

Normative Analysis as a Positive Theory 376

Capture Theory 379

Economic Theory of Regulation 380

Testing Theoryes of Regulation 392

Summary and Overview of Part Ⅱ 396

Appendix 397

A Theory of Interest Group Competition 397

Questions and Problems 399

11 Theory of Natural Monopoly 401

The Natural Monopoly Problem 401

Permanent and Temporary Natural Monopoly 402

Subadditivity and Multiproduct Monopoly 404

Alternative Policy Solutions 408

Ideal Pricing 409

Franchise Bidding 421

Actual Solutions 421

Summary 423

Appendix 423

The Troublesome Case of a Natural Monopoly 423

Questions and Problems 425

12 Natural Monopoly Regulation and Electric Power 429

Traditional Rate-of-Return Regulation 430

The Rate Case 431

Averch-Johnson Effect 433

Incentive Regulation 436

Performance Standards 436

Earnings Sharings 437

Price Caps 439

Yardstick Regulation 442

Rate Structure 443

FDC Pricing 443

Undue Discrimination 445

Peak-Load Pricing 447

Costs of Power Production 447

Peak-Load Pricing Model 449

Regulation and Restructuring of Electric Power 453

Historical，Technological，and Regulatory Background 453

Overview of Recent Legislation 455

Restructuring in California 456

Summary 461

Questions and Problems 462

13 Franchise Bidding and Cable Television 465

Theory of Franchise Bidding 465

Competition at the Bidding Stage 467

Contractual Arrangements for the Postbidding Stage 475

Assessment of Franchise Bidding 478

Cable Television 479

Historical/Regulatory Background 480

Cable Television as a Natural Monopoly 481

Franchising Process 485

Assessment of Franchise Bidding 487

Rate Regulation 492

Is There a Role for Government Intervention？ 497

Summary 499

Questions and Problems 500

14 Public Enterprise 503

General Background 504

Positive Theory of Public Enterprise 505

Managerial Model of a Firm 506

Managerial Model of a Private Enterprise 507

Managerial Model of a Public Enterprise 508

Comparison of Public and Private Enterprise 510

Municipal Electric Utilities 512

Pricing Behavior 512

Allocative Efficiency Comparison 513

Productive Efficiency Comparison 515

Assessment of Private versus Public Utilities 515

Airlines 516

Privatization 517

Summary 521

Questions and Problems 522

15 Dynamic Issues in Natural Monopoly Regulation：Telecommunications 523

Transformation of a Natural Monopoly 523

Basis for Natural Monopoly Regulation 524

Sources of Natural Monopoly Transformation 527

Regulatory Response 529

Intercity Telecommunications Market 534

Telecommunications Act of 1996 544

Separation of Regulated Monopolies and Competitive Markets 546

Benefits and Costs of Separation 547

Breakup of AT＆T 550

Summary 551

Questions and Problems 553

16 The Regulation of Potentially Competitive Markets：Theory and Estimation Methods 555

Theory of Price and Entry/Exit Regulation 556

Direct Effects of Price and Entry/Exit Regulation：The Competitive Model 556

Direct Effects of Price and Entry/Exit Regulation：The Imperfectly Competitive Model 560

Indirect Effects of Price and Entry Regulation 564

Some Indirect Effects of Price and Exit Regulation 567

Regulation and Innovation 568

Methods for Estimating the Effects of Regulation 572

Overview of Estimation Methods 572

Intertemporal Approach 572

Application：New York Stock Exchange 574

Intermarket Approach 575

Application：Advertising of Eyeglasses 576

Application：44 Liquormart Decision 578

Counterfactual Approach 578

Application：State Usury Laws 579

Measuring the Return to Price and Entry Restrictions：Taxicab Regulation 583

Summary 585

Questions and Problems 587

17 Economic Regulation of Transportation：Surface Freight and Airlines 589

Transportation Industry 589

Surface Freight Transportation 591

Regulatory History 591

Description of Regulatory Practices 595

Effects of Regulation 597

Airlines 609

Regulatory History 609

Description of Regulatory Practices 611

Effects of Regulation 612

Competition and Antitrust Policy after Deregulation 625

Lessons from Regulation and Deregulation 638

Summary 639

Questions and Problems 640

18 Economic Regulation of Energy：Crude Oil and Natural Gas 641

The Theory of Price Ceilings 642

Price and Quantity Regulation of the Crude Oil Industry 646

Regulatory History 648

Oil Prorationing 651

Regulatory Practices 651

Rationale for Prorationing 651

Solutions to the Common Pool Problem 656

Effects of Prorationing 657

Mandatory Oil Import Program 659

Regulatory Practices 659

Effects of Regulation 659

Crude Oil Price Controls 661

Regulatory Practices 661

Effects of Price Regulation 663

Price Regulation of the Natural Gas Industry 671

Regulatory History 672

Regulatory Practices 673

Effects of Price Regulation 675

Transition from Regulation to Markets in the Transmission of Natural Gas 683

Summary 685

Questions and Problems 686

Ⅲ HEALTH，SAFETY，AND ENVIRONMENTAL REGULATION 689

19 Introduction：The Emergence of Health，Safety，and Environmental Regulation 691

Risk in Perspective 692

Measuring Mortality Risks 694

The Infeasibility of a No-Risk Society 695

Homeland Security 696

Wealth and Risk 699

Irrationality and Biases in Risk Perception 700

Policy Evaluation 703

Regulatory Standards 704

Benefit-Cost Analysis 704

The Role of Heterogeneity 705

Uncertainty and Conservatism 707

The Role of Risk Ambiguity 707

The Role of Political Factors 709

Economic Models of Environmental Policies 709

Voting Patterns 711

Summary and Overview of Part Ⅲ 713

Questions and Problems 714

Recommended Reading 715

20 Valuing Life and Other Nonmonetary Benefits 717

Policy Evaluation Principles 718

Willingness-to-Pay versus Other Approaches 720

Variations in the Value of Statistical Life 723

The Labor Market Model 725

Empirical Estimates of the Value of Life 730

Value of Risks to Life for Regulatory Policies 731

Survey Approaches to Valuing Policy Effects 736

Valuation of Air Quality 738

Exploratory Nature of the Survey Approach 738

Sensitivity Analysis and Cost-Effectiveness 739

Risk-Risk Analysis 740

Establishing Prices for Health，Safety，and Environmental Regulation 742

Questions and Problems 742

21 Environmental Regulation 745

The Coase Theorem for Externalities 746

The Coase Theorem as a Bargaining Game 747

A Pollution Example 748

Long-Run Efficiency Concerns 750

Transaction Costs and Other Problems 750

Smoking Externalities 751

Special Features of Environmental Contexts 754

Siting Nuclear Wastes 756

Selecting the Optimal Policy：Standards versus Fines 757

Setting the Pollution Tax 758

The Role of Heterogeneity 760

The Role of Uncertainty 761

Pollution Taxes 763

Cost Heterogeneity for Water Pollution Control 764

Current Market Trading Policies 765

The Future of Market Approaches 768

Global Warming and Irreversible Environmental Effects 769

Assessing the Merits of Global Warming Policies 769

How Should We React to Uncertainty？ 771

Multiperson Decisions and Group Externalities 772

The Prisoner’s Dilemma 772

The N-Person Prisoner’s Dilemma 773

Applications of the Prisoner’s Dilemma 774

The Enforcement and Performance of Environmental Regulation 775

Enforcement Options and Consequences 775

Hazardous Wastes 776

Contingent Valuation for the Exxon Valdez Oil Spill 779

The Senior Discount for the Value of Life 782

Evaluating Performance 783

Summary 785

Questions and Problems 786

22 Product Safety 789

Emergence of Product Safety Regulations 789

Current Safety Decisions 790

Changing Emphasis of Product Regulation 792

Premanufacturing Screening：The Case of Pharmaceuticals 793

Weighing the Significance of Side Effects 794

Drug Approval Strategies 794

The Behavioral Response to Product Safety Regulation 798

Consumer’s Potential for Muting Safety Device Benefits 801

The Costs of Product Safety Regulation：The Automobile Industry Case 804

Trends in Motor Vehicle and Home Accident Deaths 808

Accident Rate Influences 809

The Decline of Accident Rates 809

The Rise of Product Liability 810

The Negligence Standard 812

The Strict Liability Standard 813

The Ford Pinto Case 813

Escalation of Damages 815

Risk Information and Hazard Warnings 816

Self-Certification of Safe Products 817

Government Determination of Safety 818

Alternatives to Direct Command and Control Regulation 818

Regulation through Litigation 820

Breast Implant Litigation and Regulation 821

The Future of Product Safety Policy 823

Questions and Problems 825

23 Regulation of Workplace Health and Safety 827

The Potential for Inefficiencies 829

How Markets Can Promote Safety 829

Compensating Wage Differential Theory 831

Risk Information 833

On-the-Job Experience and Worker Quit Rates 835

Inadequacies in the Market 836

Externalities 838

OSHA’s Regulatory Approach 838

Setting OSHA Standard Levels 839

The Nature of OSHA Standards 841

The Reform of OSHA Standards 843

Regulatory Reform Initiatives 843

Changes in OSHA Standards 843

OSHA’s Enforcement Strategy 847

Inspection Policies 848

Trivial Violations 849

OSHA Penalties 849

Enforcement Targeting 850

The Impact of OSHA Enforcement on Worker Safety 851

OSHA Regulations in Different Situations 852

OSHA and Other Factors Affecting Injuries 854

The Role of Workers’ Compensation 860

Agenda for Policy Reform Efforts 861

Questions and Problems 863

24 Patents and Pharmaceuticals 865

Economics of Invention and Patents 865

Background on Patents 867

Incentives to Invent：Monopoly versus Competition 868

Welfare Analysis of Patents 872

Pharmaceuticals and the Role of Patents 881

Industry Structure 881

The 1984 Drug Price Competition and Patent Restoration Act 891

Other Policies That Affect R＆D Incentives 894

Summary 899

Questions and Problems 899

Author Index 903

Subject Index 909