TopEconomics 33: American Industry and Public PolicyTop
Union College, Schenectady, New York Prof. Doug Klein

Syllabus

Text: Douglas F. Greer, Business, Government, and Society, 3rd ed. (New York: Macmillan, 1993).

Other Readings: In addition to the text, there will occasionally be readings handed out or placed on reserve in Schaffer Library. I also expect you to read a good business periodical such as the Wall Street Journal (required), New York Times, Business Week, Fortune, The Economist or the like. I plan to make frequent use of current examples from these and other sources to illustrate the points of the course.

Office: Location: 109 Social Science Building.
Hours: Winter 1998: Monday and Thursday, 2:00-3:30, and by appointment.
Phone: (518) 388-6056.
E-mail: kleind@union.edu

Grading: Your grade will be based on two exams, one project, and several quizzes and homework assignments. The weights will be approximately as follows:

Midterm Exam Monday, Oct. 13 20%
Final Exam Week of Nov. 17 30%
Project due Mon. Nov. 10 30%
Quizzes, HWs, Participation & Attend.   20%

Project: The project will be an analysis of the current state of competition and public policy within an industry which you will choose (within certain constraints). The work will consist of three homework assignments (due Oct. 1, Oct. 17, and Oct. 31), plus a final report based on those assignments. The final paper is due in class, Nov. 10. Late papers will be penalized one grade step per day (e.g. A- to B+) beginning after class on Nov. 10.

Exam and Homework Policy: I do not willingly give makeup quizzes or exams, except in cases of documented illness, injury, or other true emergency. Even in these cases, you must be sure that I am notified in advance of the quiz or exam you miss. Homework will be accepted, at a reduced value, up to one week late. After that, I will give no credit.

E-mail: Make sure you have a working e-mail account. I would be glad to answer questions via e-mail, and it may occasionally be useful for me to contact the entire class outside of normal class time, to distribute or clarify an assignment.

Outline and Readings: Chapters and pages are in Greer, other readings are on reserve. Readings are to be read by the date indicated.

Date Topic Reading
PART I: INTRODUCTION
Sept. 8 Introduction Handout, Ch. 1
Sept. 10 Review of competition Ch. 2, pp. 15-23, 34-37
Sept. 12 Market failures Ch. 2, pp. 23-33
Sept. 15 Public policies Ch. 3
Sept. 17 Some history Ch. 4
PART II: ANTITRUST
Sept. 19 Structure-Conduct-Performance Ch. 5, pp. 88-99
Sept. 22 Testing the SCP relationship aircraft industry article
Sept. 24 Aims of Antitrust policy Ch. 5, 99-111 plus Audretsch article
Sept. 26 Collusion - theory and policy Ch. 6 plus cigarette article
Sept. 29 Collusion - cases Ch. 6
Oct. 1 - Structure due Monopoly - theory and legislation Ch. 7
Oct. 3 No class  
Oct. 6 Monopoly - cases Ch. 7
Oct. 8 Merger - motives Ch. 8
Oct. 10 Merger - cases Ch. 8
Oct. 13 Midterm Exam  
Oct. 15 Price discrimination Ch. 9
Oct. 17 - Conduct due Vertical restraints Ch. 10
Oct. 20 Multinational corporations Ch. 11
PART III: INFORMATION POLICY
Oct. 22 Product standardization & information Ch. 12
PART IV: ECONOMIC REGULATION
Oct. 24 What is economic regulation Ch. 14
Oct. 27 Electric and gas utility regulation Ch. 15
Oct. 29 Emerging competition in electricity Joskow article
Oct. 31 - Perf. due Telecommunications - history Ch. 16
Nov. 3 Telecommunications Act of 1996 Summary
Nov. 5 Transportation regulation & deregulation Ch. 18
Nov. 7 Energy policy Ch. 19
Nov. 10 - Paper due Energy policy, continued Ch. 19
PART V: SOCIAL REGULATION not covered
PART VI: MISCELANEOUS POLICIES
Nov. 12 Patents and R&D Ch. 24
Nov. 14 Promotion and Protection policies Ch. 25
Week of Nov. 17 Final Exam  

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