Edward J. Deak
Department of Economics
Fairfield University
Fairfield, CT 06430
Phone: 203-254-4000 x2866
Office: Don 327
DrDeak@edwardjdeak.com

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Economics 11
Economics 12
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Economics 245

Econ 245 - Antitrust And Regulation
Texts: The following books will be used in the course
  • David L. Kaserman and John W. Mayo, Government and Business: The Economics of Antitrust and Regulation, (Fort Worth, TX: The Dryden Press, 1995).
  • William Breit and Kenneth Elzinga, The Antitrust Casebook: Milestones in Economic Regulation, 3rd ed., (Fort Worth, TX: The Dryden Press, 1996). 
  • Kwoka, John E. and Lawrence J. White, The Antitrust Revolution: The Role of Economics, 3rd ed., (New York: Harper Collins, 1999).
 
Examinations:
  • There will be two intra-term exams, worth 220 points each. They will test you on the theory, judicial rulings, cases, microthemes and terminology covered during the previous section of the course. They are tentatively scheduled for Wednesday October 13th, and Monday November 15th.  
  • There will be a comprehensive final exam worth 300 points given in December.  
  • A grade of zero will be recorded for a missed exam or assignment, in the absence of and acceptable and verifiable excuse.  
  • Except for the final, there are no makeup exams. 
 
Weekly Cases:
  • On most Wednesdays and some Mondays, a portion of each class will be devoted to an interactive discussion of the cases found in the K&W text or in handouts distributed in class. You must read the case before class. There will be 12 cases worth 20 points each, and your accurate, active participation in the discussion will count for 220 points of your final grade. 
 
Microthemes: 
  • On most Monday's, and some Thursdays, there will be a one page, type written, microtheme due. It will ask you to analyze an article dealing with a current antitrust or regulatory issue. The assignments will be distributed in class, one meeting prior to their due dates, and will be worth 20 points each. The best 12 will count towards your final grade. 
 
Final Grade:
  • Your semester grade will be worth a maximum of 1200 points in total. I reserve the right to alter your final mark by up to 1/2 of a letter grade based upon the quality of your class participation. The University's policy regarding cheating and plagiarism will always be in force .
 
 
 
Readings and Schedule
 The following pages contain the proposed class outline and the reading assignments, which are identified by the code letters preceding the texts listed above. The case schedule will be maintained regardless of how close we come to meeting the other due dates. You are expected to read the assignment before class and to be able to participate intelligently in the class discussions.
 
 
1.  
9/8-9 Introduction to Antitrust and Regulation - Typical Problems Microsoft – Monopolization AT&T – Cable “open access” for Internet connections Exxon/Mobil merger 
  •  (T) Ch. 1 
  • (KW) pp. 1-5 
  • Articles on contemporary issues distributed in class. 
2.  
9/13-16 Competition and Monopoly - Efficiency v. Economic Power 
  • (T) Ch. 2. 
  • (KW) pp.8-14. 
  • (KW) Case17 – Microsoft (1995) 
3.  
9/20-23 The History and Structure of the Antitrust Laws 
  •  (T) Ch. 3. 
  •  (R) pp. 1-8. 
  • (KW) Case 11 – MIT (1993) 
4.  
9/27-30 Sherman Sec.2 - The Monopolization Problem and Economic 
Theory: The Rule-of-Reason 
  • (T) pp.97-122 
  • (KW) pp.172-178. 
  • (R) pp. 173-176, 120-132 
  • (KW) Case 8 – NCAA (1984)
 5.  
10/4-7 Recent Monopolization Cases 
  • (T) pp.122-142 
  • (R) pp. 177-210, 305-317, 322-333. 
  • (KW) Case 7 – Ethyl Lead (1984) 
6.  
October 11 Columbus Day Monday – No class 
7.  
10/13 EXAM #1 
8.  
10/14 Sherman Act Sec.1 – The Cartel Problem and Economic Theory 
  • (T)pp. 151-166 
  • (KW) pp. 166-172. 
  • (R) pp. 9-14. 
  • (KW) Case 13 – Domestic Airline Industry 
9.  
10/ 18-21 Judicial Treatment of Collusion - Cases Establishing a Per Se Rule. 
  • (T) pp.166-170. 
  • (R) 14-24, 34-50. 
  • (KW) Case 6 – Staples-Office Depot Merger (1997)  
10.  
10/25 Recent Collusion Cases - Per Se v. Rule-of-Reason 
  • (T) pp. 170-181. 
  • (R) pp. 60-67. 
11.  
10/27-28 The Oligopoly Problem - Tacit Collusion: Theory + Cases 
  • (T) pp. 185-203. 
  • (R) pp. 78-84. 
12.  
11/1 Oligopoly Cases - The boundaries of conspiracy v. tacit behavior 
  • (T) pp. 203-213. 
  • (R) pp. 85-93. 
  • (KW) Case 5 – Bell Atlantic-NYNEX merger (1997) 
13.  
11/3-4 The Merger Problem - Horizontal Merger Theory & Policy 
  • (T) pp.217-235, skim pp.255-270. 
  • (R) pp. 109-111, 411-436. 
  • (KW) pp.14-20. 
  • (KW) Case 15 – Monsanto v. Spray-Rite (1984) 
14.  
11/8-11 Horizontal and Vertical Merger Cases 
  • (T) pp.235-252, 297-301, 310-312. 
  • (R) pp. 133-171 
  • Distribute Telecommunications case in class. 
15.  
11/15 EXAM #2 
16.  
11/17-18 Vertical Mergers + Restraints - Policy and Cases 
  • (T) pp.312-328, 363-379 
  • (R pp.355-388 
  • Case Discussion – Telecommunications regulation and deregulation Distribute Transportation case in class. 
17.  
11/22 Conglomerate Mergers - Policy and Cases 
  • (T) pp.223 
  • Case Discussion – Transportation regulation and
  • deregulation Distribute Worker Health and Safety case in class. 
18.  
11/24-26 Thanksgiving Recess – No classes 
19.  
11/29 The History and Structure of Economic Regulation 
  • (T) pp.434-448 
  • 12/1-3 The Theoretical Basis of Regulation 
  • (T) Ch.12, pp.486-492, 498-502, 506-514 
  • Case Discussion - Worker Health and Safety case (OSHA). 
  • Environmental Regulation case distributed in class. 
20.  
12/6-9 Utility Regulation + Regulatory Reform - The Rate Base, Rate of Return, and Rate Structure Problems. 
  • (T) pp.448-456, 460-470, 478-482. 
  • (R Ch.17. 
  • Case Discussion – Environmental Regulation
21.  
FINAL EXAMINATION  December, 1999