Econ 118: Spring 2001

Assignment #1 Due Monday Feb.12

Essay, 6-8 pages long:

What is a firm? What kinds of factors determine its structure and size? How have firms changed in the US in the last two decades?

Bring into your discussion the theory of transactions costs (R.H.Coase and O.E.Williamson), and use the articles by Whitman, Simon and Chandler to help you describe recent changes.

Assignment #2 Due Wednesday Feb. 28

Essay 6-8 pages long:

What are the origins of monopoly power? What are its effects (benefits and costs)? Evaluate current government (antitrust) policy towards monopoly power. In what ways could it be improved? Use real world examples to illustrate your arguments.

Assignment #3 Due Wednesday March 21

Essay 6-8 pages long

Consider the three measurable industry variables: concentration, profitability and advertising. From your reading what can you say about the empirical relationship between them. Describe the cause and effect implications of empirical studies using these three variables. What can you say about the reliability and significance of empirical studies in industrial organization?

Assignment #4 Due Friday, April 6

Essay 6-8 pages long

Explain whether and how you would expect the performance (e.g. prices and profits) of an industry with only one dominant firm (a monopoly) to differ from the performance of an industry with several large firms (an oligopoly)? How does antitrust policy distinguish between the two types of market? Is antitrust policy effective for oligopolies?

Assignment #5 Due Friday April 27

Essay 6-8 pages long

Summarize and explain the issues in the Microsoft case. In your view what should be the outcome be? Explain whether you agree with Judge Jackson's recommendation to split the firm into two parts. What (if any) other remedies might be imposed?

Note: Please be sure to cite all your sources clearly.