Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions...
-
Upload
shannon-bennett -
Category
Documents
-
view
213 -
download
0
Transcript of Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions...
![Page 1: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/1.jpg)
Public Policy in Private Markets
Debate 1
![Page 2: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/2.jpg)
Announcements
Today: Debate 1 (clicker questions throughout) HW 3 due today
Thursday (3/8): in-class midterm Pick up HW 2 after class. i>clicker: 6 devices not registered (no
registration = no credit)
![Page 3: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/3.jpg)
Announcements
3/8: Midterm 1 In-class exam (11:15-12:30), will start a couple of
minutes earlier to give all ample time. Review sheet posted, including sample questions
(40% multiple choice, 60% essay) Available to answer questions via email all the
time. On day of exam: 9-11 am @ my office to answer
questions
![Page 4: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/4.jpg)
Debate 1
Group 1: Priscilla Lee, Angela Ho, Linh Troung (Spirit – plaintiff side) First video
Group 2: Devin Crory and Dave Esteves (Northwest – defense side) Second Video
Room for defense (5 minutes, max, per group)
i>clicker questions throughout
![Page 5: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/5.jpg)
Controversy
What was the most controversial issue in this case?
1. Geographic market definition2. Product Market definition3. Calculation of relevant price (i.e.
revenue)4. Calculation of average cost
![Page 6: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/6.jpg)
Guilty?
Do you think NW is guilty of monopolization?
1. YES
2. NO
![Page 7: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/7.jpg)
Clarity of Presentation
Which side presented the clearest case?
1. Spirit (plaintiff)
2. Northwest (defense)
![Page 8: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/8.jpg)
Strength of Arguments
Which side presented the strongest economic arguments?
1. Spirit (plaintiff)
2. Northwest (defense)
![Page 9: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/9.jpg)
Overall assessment of quality of presentation
On a scale from 1 – 10 (1 poor, 10 outstanding), what would be your rating of the plaintiff’s side (Spirit)?
On a scale from 1-10 (1 poor, 10 outstanding), what would be your rating of the defense side (Northwest)?
![Page 10: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/10.jpg)
Controversy
What was the most controversial issue in this cade?
1. Geographic market definition2. Product Market definition3. Calculation of relevant price (i.e.
revenue)4. Calculation of average cost
![Page 11: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/11.jpg)
Guilty?
Do you think NW is guilty of monopolization?
1. YES
2. NO
![Page 12: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/12.jpg)
Spirit v. NWest – Predatory Pricing?
Difficult issue Stop potential harmful behavior Allow vigorous competition
Occurs infrequently? Airlines may be exception
Multimarket contact
![Page 13: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/13.jpg)
Spirit v. NWest – Predatory Pricing?
Difficult issue Stop potential harmful behavior Allow vigorous competition
Occurs infrequently? Airlines may be exception
a Airlines may be exception
Price: unreasonably low?
Price: unreasonably high?
![Page 14: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/14.jpg)
Spirit v. NWest – Predatory Pricing?
Difficult issue Stop potential harmful behavior Allow vigorous competition
Occurs infrequently? Airlines may be exception
a Airlines may be exception
Big question: what would have been the “but-for” world?
![Page 15: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/15.jpg)
Spirit v. NWest – Predatory Pricing?
Market Definition Geographic (BOS and PHL routes), why? Product: controversial – local passengers vs. all
passengers
Market power Large market share (however you compute it) Entry barriers (loyalty, counter space, landing slots) – 76/86
gates owned by exclusive leases
Intent: Predatory pricing P<AVC: how are costs calculated?
Spirit: include more costs NWest: a higher price
![Page 16: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/16.jpg)
Spirit v. NWest – Predatory Pricing?
![Page 17: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/17.jpg)
Spirit v. NWest – Predatory Pricing?
Intent: Predatory pricing is unclear, but:
No successful entrant afterwards Controversial: lots of assumptions
No final resolution yet (NW filed bankruptcy in 2007)
![Page 18: Public Policy in Private Markets Debate 1. Announcements Today: Debate 1 (clicker questions throughout) HW 3 due today Thursday (3/8): in-class midterm.](https://reader035.fdocuments.in/reader035/viewer/2022072006/56649d215503460f949f6dad/html5/thumbnails/18.jpg)
Exam
Last portion of review sheet today