Lectures in Microeconomics-Charles W. Upton Here a Cartel, there a Cartel.

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Lectures in Microeconomics-Charles W. Upton Here a Cartel, there a Cartel

The Government as a Creator of Cartels Lemon Growers

Here a Cartel, there a Cartel The Government as a Creator of Cartels Lemon Growers Milk production

Here a Cartel, there a Cartel The Government as a Creator of Cartels Lemon Growers Milk production Bidding on government contracts

Here a Cartel, there a Cartel The Government as a Creator of Cartels Lemon Growers Milk production Bidding on government contracts –Smith and Wilson are contractors, who agree to fix prices –Public bids makes it hard to cheat. –But secret bidding makes it easy to cheat.

Here a Cartel, there a Cartel The Football Cartel Not a monopoly but a monopsony

Here a Cartel, there a Cartel The Football Cartel Not a monopoly but a monopsony –This is designed to keep player “salaries”down. –The reason is obvious-keep costs down.

Here a Cartel, there a Cartel The Football Cartel Not a monopoly but a monopsony Remember the two problems: –Cheating –Entry

Here a Cartel, there a Cartel The Football Cartel Cheating

Here a Cartel, there a Cartel The Football Cartel Cheating The huge NCAA rulebook on recruiting.

Here a Cartel, there a Cartel The Football Cartel Cheating The huge NCAA rulebook on recruiting. –Limits on summer jobs –No alumni support

Here a Cartel, there a Cartel The Football Cartel Cheating The huge NCAA rulebook on recruiting. Why no Department of Justice anti-trust enforcement?

Here a Cartel, there a Cartel The Football Cartel Cheating The huge NCAA rulebook on recruiting. Why no Department of Justice anti-trust enforcement? –This is academics, not a business

Here a Cartel, there a Cartel The Football Cartel Entry

Here a Cartel, there a Cartel The Football Cartel Entry It is hard to break into big time football.

Here a Cartel, there a Cartel The Football Cartel Entry It is hard to break into big time football. –Cannot compete on salaries –Cannot compete on NFL exposure –Side payments to other schools.

Here a Cartel, there a Cartel End ©2005 Charles W. Upton