Essay 6, Economics 2367
Joseph Rossetti 11-30-2016
Instructions Please type your essays using your favorite word processor, and turn it in via drop box on Carmen. Pick only one essays to turn in and have graded. If you submit more essays you will receive credit only for the first essays you submit. They should not be more than 3 pages, and should answer all parts of the question. A rubric detailing how the essay will be graded is posted alongside this document.
I am available during office hours (and lecture) to answer any questions you may have about the essay prompt. I can also answer specific questions about content from the course. I can also discuss the organization and plan for your essay, although I will not proof-read or act as an editor.
Clarity, and brevity are valuable. If you understand these topics you should be able to use appropriate terminology, and express yourself with an economy of words.
You should also consider this as a take-home exam (where I and your notes are available to help). First make sure you understand the material (study a bit, read some of the readings you may have skipped, ask me questions, etc). Then sit down and write the essay in 1-2 hours putting most effort into the content part of the essay. The result of your writing session constitutes a rough draft. Wait a day, then check for spelling, grammar, and style issues. Waiting a day and re-reading also gives you time to ask me questions about any content you realized you didn’t understand very well.
Industrial Organization One of the most important questions in economics is how industry should be organized, and what governments role is in enforcing that organization. The U.S. Gov- ernment attempts to maintain competition in the face of monopolies and anti-competitive actions of oligopolists. Explain using an ethical framework (that must be consequentialist) why the U.S. Government attempts to prevent firms from using certain strategies and from creating monopolies. Are there any cases where monoplies may be desirable? Are there any cases where monoply or monopoly power is clearly problematic? Are there any cases where whether or not monopoly power is good or bad is unclear and require careful case by case analysis? Given an example of each type of situation and the types of arguements that back it up.
Wal-Mart This essay will be a pro-con discussion of Wal-Mart entry into a community. You should explain Wal-Mart’s effects on labor markets, consumers, and productive efficiency. For each topic discuss both a well understood effect where economists have good data and results, and a less well understood effect where economists data is lacking and results are more anecdotal. Explain how Wal-Mart is an example of creative destruction, and why regulating the rise of powerful new firms like Wal-Mart is difficult. Use a consequentialist ethical framework.
Sports Briefly explain the historical developments in sports arena construction and labor markets in the major U.S. team sports. Paying special attention to the role of rival leagues competing with the main leagues. Then choose one aspect: either labor markets or arena construction to explain in detail.
• If you discuss labor markets then explain monopsony and its effects, take a stand on whether owners/leagues excercise this power. Explain how historical policies or trends have increased or decreased the effects of monopsony in sports labor markets.
• If you discuss arenas then explain local substitution. Take a stand on whether/how commu- nities should pay for new arenas, and explain how the benefits and costs of a new arena are calculated by economists.
This essay should be informative. Make sure it is readable, and communicates economic concepts simply and clearly so that a lay person might understand.
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