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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
| MARKET FAILURE, REGULATION, AND PUBLIC CHOICE | |
| Title | Brief Summary |
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A proposal to create
a new runway at London's Heathrow Airport is based on dubious cost analyses
that do not consider the full costs, including environmental costs, of flying. (Updated Septembe 10, 2003) |
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New regulations being
proposed in Congress to limit the ability of businesses to send spam email
is gaining the support of numerous businesses, but the opposition of consumer
groups traditionally known to fight for an end to spam email. (Updated August 27, 2003) |
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A new study from the
National Academy of Sciences is reported to endorse heavy increases in excise
taxes and curbs on advertising of alcohol in an attempt to reduce underage
drinking. (Updated August 27, 2003) |
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Dentsply, the dominant
supplier of artificial teeth, is alleged to have engaged in illegal exclusive-dealing
arrangements with its dealers, contributing to its monopoly position and
higher prices than would otherwise have occurred. (Updated October 10, 2002) |
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Royal Caribbean and
P&O Princess Cruises wish to merge, but Carnival has mounted a rival
hostile offer. Which, if any, merger will be allowed by regulators depends
on the definition of the market and the implications of any market dominance
for competition. (Updated April 1, 2002) |
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The Federal Energy Regulatory
Commission has imposed price controls on three electricity-generating companies
because they wield too much power in times of peak demand. (Updated January 15, 2002) |
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The Justice Department
is appealing the decision of a district court judge to throw out a lawsuit
alleging predatory pricing by American Airlines against start-up airlines
at its Dallas/Fort Worth hub. (Updated August 1, 2001) |
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Phoenix is the latest
jurisdiction to approve a tax increase on rental cars to fund a new football
stadium. Car rental companies and the Travel Industry Association are not
in favor. However, the Phoenix Travel and Sports Authority states that visitors
will benefit from the stadium and that the tax will not be noticed by consumers. (Updated April 1, 2001) |
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Airlines of Prey Protected by Government Inaction
Full Summary |
The outgoing Clinton
Administration does not propose to regulate predatory pricing by major airlines
to thwart smaller airlines. This is in spite of indicating the opposite
back in 1998. In the interim, intense lobbying has occurred by the major
airlines. (Updated February 1, 2001) |
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Power to the People Threatened
Full Summary |
California state regulators
have recommended emergency electricity rate hikes. A booming economy and
increasingly costly wholesale power purchases in the context of frozen prices
threaten the viability of the utilities. (Updated February 1, 2001) |
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Price-Fixing or Market Forces?
Full Summary |
The Federal Trade Commission
is investigating high gasoline prices in the Midwest. The issue is whether
they were caused by higher costs or illegal communication between producers. (Updated October 1, 2000) |
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Bridgestone Deflated by Tire Separation
Full Summary |
Firestone tires have a tread separation
problem. Mounting numbers of deaths and injuries in the U.S. and overseas
have been attributed to faulty tires. The Venezuelan authorities are recommending
the filing of criminal charges. (Updated October 1, 2000) |
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Turkish Treasures Delight Archaeologists
Full Summary |
Cultural treasures dating from Roman
times have been found during the construction of a dam in southern Turkey.
The government is determined to go ahead with filling the dam in spite of
the archaeological excavation being unfinished. (Updated July 1, 2000) |
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The Economics of Ergonomics
Full Summary |
New ergonomics rules are being issued.
There is debate between the Occupational Safety and Health Administration
and business groups over the true financial costs and the benefits in terms
of reduced repetitive strain injuries. (Updated January 1, 2000) |
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Microsoft Trial: Competition Bundled Out?
Full Summary |
In the Microsoft trial, the government
alleges that Microsoft unfairly bundles its internet browser with Windows
98, in which it has a near monopoly, and also alleges that Microsoft engaged
in deals and threats to deter competition. Microsoft responds that it is
simply making its products easier to use. (Updated December 1, 1998) |
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Full Summary |
A Senate panel criticized
Microsoft's bundling of its web browser with its Windows software because
it could reduce competition. There are both legal questions and concerns
that Microsoft is not showing public responsibility. (Updated June 5, 1998) |
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