Economic Policy and Market Regulation Part 3
description
Transcript of Economic Policy and Market Regulation Part 3
![Page 1: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/1.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 1
Economic Policy and Market Regulation
Part 3
Dr. Stefan KoothsBiTS Berlin
(winter term 2013/2014)www.kooths.de/bits-ep
![Page 2: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/2.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 2
Outline
1. Introduction and Overview2. Market Mechanisms and Government
Interventions3. Externalities and Public Goods
Technological externalities Public goods and common resources
4. Competition Policy and Regulation5. Ordoliberalism and the Social Market Economy6. Summary: The Key Lessons Learnt
![Page 3: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/3.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 3
Technological vs. pecuniary externalities
![Page 4: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/4.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 4
Positive externalities: Private and social utility
![Page 5: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/5.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 5
Negative externalities: Private and social cost
![Page 6: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/6.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 6
Policy instruments: Incentive-based vs. command-and-control
![Page 7: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/7.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 7
Criteria: Static efficiency, dynamic efficiency, and effectiveness
![Page 8: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/8.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 8
Moral suasion
![Page 9: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/9.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 9
Nationalization
![Page 10: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/10.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 10
Public orders
![Page 11: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/11.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 11
Pigou-taxes/subsidies
Arthur Cecil Pigou(1877—1959)
![Page 12: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/12.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 12
Cap-and-trade (example: pollution permits)
![Page 13: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/13.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 13
Bargaining: The Coase theorem
Ronald Coase(1910—2013)
![Page 14: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/14.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 14
Outline
1. Introduction and Overview2. Market Mechanisms and Government
Interventions3. Externalities and Public Goods
Technological externalities Public goods and common resources
4. Competition Policy and Regulation5. Ordoliberalism and the Social Market Economy6. Summary: The Key Lessons Learnt
![Page 15: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/15.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 15
Classification of goods: Excludability and rivalry
Classification matrixRivalry?
yes no
Excludability?yes Private good Club good
no Quasi-public good Public good
![Page 16: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/16.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 16
Private vs. collective goods: Aggregating individual demand
![Page 17: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/17.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 17
Non-excludability: The free-rider problem
![Page 18: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/18.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 18
Managing collective goods: Quantities, prices, and willingness to pay
![Page 19: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/19.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 19
Providing public goods: Cost-benefit analysis
![Page 20: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/20.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 20
The Tragedy of the Commons
![Page 21: Economic Policy and Market Regulation Part 3](https://reader036.fdocuments.in/reader036/viewer/2022070422/568165ed550346895dd912e4/html5/thumbnails/21.jpg)
KOOTHS | BiTS: Economic Policy and Market Regulation (winter term 2013/2014), Part 3 21
Common resources and property rights