Download Part 3 - Stefan Kooths

Economic Policy
and Market Regulation
Part 3
Dr. Stefan Kooths
BiTS Berlin
(winter term 2013/2014)
www.kooths.de/bits-ep
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
1
Outline
1. Introduction and Overview
2. Market Mechanisms and Government Interventions
3. Externalities and Public Goods


Technological externalities
Public goods and common resources
4. Competition Policy and Regulation
5. Ordoliberalism and the Social Market Economy
6. Summary: The Key Lessons Learnt
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Technological vs. pecuniary externalities
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Positive externalities: Private and social utility
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Negative externalities: Private and social cost
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Policy instruments: Incentive-based vs. command-and-control
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Criteria: Static efficiency, dynamic efficiency, and effectiveness
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Moral suasion
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Nationalization
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Public orders
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Pigou-taxes/subsidies
Arthur Cecil Pigou
(1877—1959)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Cap-and-trade (example: pollution permits)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Bargaining: The Coase theorem
Ronald Coase
(1910—2013)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Outline
1. Introduction and Overview
2. Market Mechanisms and Government Interventions
3. Externalities and Public Goods


Technological externalities
Public goods and common resources
4. Competition Policy and Regulation
5. Ordoliberalism and the Social Market Economy
6. Summary: The Key Lessons Learnt
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Classification of goods: Excludability and rivalry
Rivalry?
Classification matrix
yes
no
yes
Private good
Club good
no
Quasi-public good
Public good
Excludability?
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Private vs. collective goods: Aggregating individual demand
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Non-excludability: The free-rider problem
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Managing collective goods:
Quantities, prices, and willingness to pay
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Providing public goods: Cost-benefit analysis
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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The Tragedy of the Commons
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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Common resources and property rights
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3
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