14 Feb 2006.

Tests: returned on Monday.

Chapter 10 of Viscusi: A lot of it is review.

1. Should I apply for the FTC job? What motivates bureaucrats?

3.  Wilson's 3 bureaucrats

4. What is economic regulation? P and Q. Munn v. Illinois (1877). ICC
(1887).

5. The public interest and capture theories

7. Coffin illustration

6. Stigler-Peltzman and   Becker

Showstoppers.

7. Hospitals as an illustration

9. fat tax?

 BlomingtonHospital rezoning.New grocery store rezoning.

Urbana loss of nonprofit status Carle Hospital, Catholic hospital.

Auction story--- package auctons not allowed. Ron Harstad. Purposeful
delay-- he consults and can tell Verizon to bid so as to foul up the
auction.

What is Economic Regulation?

1877: Munn V. Illinois. The State of Illinois could regulate prices
set by grain elevators.

The Interstate Commerce Act of 1887. Federal reguatkon of railorad
prices.

 The trend in economic regulation: Not uniform. Trucking, airlines,
telephones, a nd banking  were deregulated.

THEORIES OF REUGLATION: James Q WIlson: Careerists, Politician,
Professional.

 Taxation by Regulation---Posner. Regulation is like taxes. So if it
looks inefficient, it might not be, as a way to redistribute.

Why do we have regulations.

PUBLIC INTEREST THEORY:Naive. Normative, not positive.

Capture THeory. POliticians or administrators are captured. But not
all reuglation helps the industry. Some helps consumers, or parts of
the industry. This is really not much of a theory-- more, an empriical
observation.

Stigler-Peltzman. Poltiicians put themevles upfor bid.  Indifference
curve diagram,  .

Becker. POliticians are unimportant. Interest groups fight.