Economics of Regulation and Antitrust

This new edition of the leading text on business and government focuseson the insights economic reasoning can provide in analyzing regulatory and antitrustissues. Departing from the traditional emphasis on institutions, Economics ofRegulation and Antitrust asks how economic theory and empirical analyses canilluminate the character of market operation and the role for government action andbrings new developments in theory and empirical methodology to bear on thesequestions.The fourth edition has been substantially revised and updated throughout, with new material added and extended discussion of many topics. Part I, onantitrust, has been given a major revision to reflect advances in economic theoryand recent antitrust cases, including the case against Microsoft and the SupremeCourt's Kodak decision. Part II, on economic regulation, updates its treatment ofthe restructuring and deregulation of the telecommunications and electric powerindustries, and includes an analysis of what went wrong in the California energymarket in 2000 and 2001. Part III, on social regulation, now includes increaseddiscussion of risk-risk analysis and extensive changes to its discussion ofenvironmental regulation. The many case studies included provide students not onlypertinent insights for today but also the economic tools to analyze the implicationsof regulations and antitrust policies in the future.The book is suitable for use ina wide range of courses in business, law, and public policy, for undergraduates aswell at the graduate level. The structure of the book allows instructors to combinethe chapters in various ways according to their needs. Presentation of more advancedmaterial is self-contained. Each chapter concludes with questions andproblems.