ECON 1011 Lecture Notes - Lecture 21: Sherman Antitrust Act, Airbnb, Competition Law
ECON 1011 verified notes
21/24View all
Document Summary
Lecture 18 - government policies: taxes and subsidies. Utilitarian notions of ethics- maximize the sum total well-being of the community: economically efficient. Yes, because it promotes freedom to choose. Consumers want, uber, airbnb, food trucks, etc. New businesses coming in, how this is promoting competition in an industry that had restricted entry to a certain degree. Competition prevents the concentration of income/wealth in the hands of a few owners. Stiglitz article about monopoly and rising inequality. Yes, competition may promote product and process innovation. All firms having the same knowledge about costs in perfect competition. Yes, especially if competition were restricted using. Perhaps some ipr can help promote innovation. Regulations or licensing may be needed for health and safety. Owners and workers in incumbent firms are hurt. Income taxes: taxed on your income, taken out of your paycheck. Property taxes: states collect revenue for their own governments. Specific tax: dollar per unit of good.
