BMW - Bavarian Monopolist at Work
BMW have been fined SFr156m ($163m) by Swiss Competition Authorities for restricting the supply of BMW and MINI cars to Swiss purchasers.
read more...»Investment in Energy Infrastructure
Many people take as given a pressing need to increase capital investment in the infrastructure of our energy sectors - but how strong are the economic and social impacts of such investment? The LSE Growth Commission met this week to discuss this and I have brought together some of the arguments drawing on a number of various twitter feeds
read more...»Oxbridge Economics: Introduction to Game Theory
Here is an “Introduction to Game Theory” lecture, which offers a broad introduction to the field, with some exercises to do at the end. (The yellow-underlined text hyperlinks out to other resources).
read more...»Improving Evaluation Skills in Economics Exams
Here is an updated version of the WEESTEPS approach to economics evaluation designed to boost the evaluation scores and exam results for AS and A2 students. Paul Bridges is the mastermind behind this superb approach to evaluation - it gives you some great pointers about the evaluative approaches that can be used. Works well for micro and macro - but particularly when you have to evaluate a specific policy intervention in a market / industry / or a macro policy discussion.
read more...»Unit 1 Micro: Minimum Wages and Living Wages
The campaign for a living wage has gained renewed prominence in the last year or so. Students and teachers wanting to know more about the minimum and the living wage debate might find this background blog from Channel 4 news relevant and useful. More here on the living wage from the Citizens UK web page.
Unit 3 Micro: The Dawn of a Shareholder Spring?
Here is a pertinent and timely resource from Channel 4 news on overcoming the principle agent-problem. Are shareholders in some of our leading companies becoming more active in holding senior executives to account for poor performance? or more concerned with their own shareholder value at a time when CEO earnings continue to grow well above inflation? I own plenty of shares but have never once been to a company AGM or exercised my right to vote. Could planned legislation further embolden activist shareholders and shake up boardrooms across the UK? More on the debate over the shareholder spring here See also BBC news: FTSE 100 bosses’ pay ‘rose 11% last year’ And: FTSE 100 bosses’ pay unrelated to results, report says (BBC news, May 2012)
read more...»Competition authorities doing more harm than good?
There have been several examples in the news recently of competition authorities acting in ways which may actually ultimately lead to less competition in several different industries. Read on to find out more.
read more...»Unit 1 Micro: Climate Change Policies - Finding the Right Mix
There are many different market failures when it comes to understanding some of the key environmental problems and challenges of the age. Addressing, attacking and correcting for complex and multiple market failures requires pointing to different policy instruments / interventions. Together can they make a sizeable difference to consumer and business behaviour and lead us away from a “business as usual” approach?
read more...»Unit 1 Micro: Adecco and Monopsony Power
Here is an example of monopsony power in the labour market and the risk of exploitation of employees. Britain’s largest recruitment agency, Adecco, is being accused of short-changing temporary staff by rounding down their holiday pay. Hundreds of thousands of people are employed by contract recruitment businesses - this is a timely reminder of the importance of employment legislation as a means of protecting the pay and conditions of people in vulnerable jobs.
read more...»Unit 3 Micro: The Third Industrial Revolution
This is well worth watching! It is an 8 minute discussion from the Economist which examines what is being called “The Third Industrial Revolution” - based around the digitisation of manufacturing processes. Concepts such as 3d printing and advanced robotics are discussed, as are concepts such as competitiveness, productivity and product personalisation. One possible consequence of these changes might be that high quality manufacturing may begin to move back from lower-wage economies such as China and back to economies like the USA.
read more...»Unit 3 Micro: Key Diagrams for Business Economics
Here is a revision download containing some key theory diagrams and accompanying explanation for topics in business economics / theory of the firm / market structures.
Key_Diagrams_A2_Business_Economics.pdf
Unit 3 Micro: Revision Game on the A-Z of Micro
Here is an A-Z quiz where you type in the answer to 26 concepts on the A2 micro course. Created using Zondle this game uses the Bubble Shooter game. Details below
read more...»Royal Mail’s refusal to supply
Here is the sub-heading from the report in today’s Daily Telegraph: “Royal Mail is limiting the number of stamps it supplies to retailers now to ensure it profits from record price rises later this month.” The report goes on “Royal Mail confirmed on Thursday that it had imposed a cap on the number of stamps every shop could buy. Retailers said it was refusing to restock them when they exceeded their allocation.” Ian Murray, the shadow postal affairs minister, says that he will be writing to regulator Ofcom about this rationing of supplies.
read more...»Unit 3 Micro: Revision on Nationalisation
Here is a revision presentation for A2 microeconomics on the economics of nationalisation. This is the process of taking an industry or assets into public sector ownership by a national government it raises important issues concerning economic efficiency and welfare in different markets.
read more...»Unit 3 Micro: Quiz on Business Costs and Profits
Here is a twelve question quiz on business costs, revenues and profits. In the quiz simply type in the answer - correct answers take you straight into a Zondle game!
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Unit 3 Micro: Quiz on Market Structures
Here is a 12 question quiz on aspects of market structures such as monopoly created using Zondle - type in the answer to a selection of key terms
read more...»Unit 3 Micro: Evaluation Question on Supermarkets
Here is a presentation focusing on an evaluation question on supermarkets. The question is “Evaluate the factors that affect the profitability of the major food retailers in the UK.”
read more...»Unit 3 Micro: Revision on Entry Barriers
Here is a revision presentation focusing on different entry and exit barriers in imperfectly competitive markets.
Entry barriers:
* Block potential entrants from making a profit
* Protect the monopoly power of existing firms
* Maintain supernormal profits in the long run
* Barriers to entry make a market less contestable
Unit 3 Micro: Revision on Price Discrimination
This is an updated revision presentation on price discrimination in markets designed for A2 micro students.
read more...»2012 Economics Revision: Ways to Improve your Paper
Here is a revision presentation offering ideas for stronger evaluation and analysis in your AS and A2 economics exam papers. Ten strands are suggested for students who want to build really good answers especially to evaluation questions.
read more...»Unit 3 Micro: Revision on Business Objectives and Pricing
This blog links to a revised A2 micro revision presentation on business objectives and pricing.
read more...»Unit 3 Micro: Revision on Contestable Markets
This blog links to an updated revision presentation on the economics of contestable markets.
read more...»Unit 3 Micro: Revision on Monopoly Price and Output
Show and explain how a monopolist maximises profit in a market
read more...»Unit 3 Micro: Monopoly and Economic Welfare
Analyse the equilibrium price and output equilibrium under monopoly and perfect competition. Show and explain the deadweight welfare loss under monopoly and consider when a monopoly might be more productively efficient than a competitive market.
read more...»Unit 3 Micro: Revision on Scale Economies and MES
What is the connection between economies of scale and the minimum efficient scale?
read more...»Unit 3 Micro: Revision on the Law of Diminishing Returns
Why does the law of diminishing returns imply that average total cost is “U-shaped” in the short run?
read more...»Unit 1 Micro: The Collapsing Price of Carbon
The price of carbon emissions permits inside the EU’s emissions trading system has fallen to a record low. A sharp fall in total CO2 emissions in Europe has been the driving factor behind the fall in the carbon price. Last year Germany’s CO2 emissions fell by 1.2% and the UK saw a 7.2% reduction. The overall decline in the 27 country ETS was 2.4% in 2011 causing the carbon price to drop below 7 Euros per tonne.
read more...»RES Annual Essay Competition for Students 2012
Entries for the 2012 Royal Economic Society Essay Competition are flowing in strongly with just less than a month to go before the final date for submitting an answer.
read more...»Unit 3 Micro: Revision on Scale Economies, Technology and Prices
Why do the prices of flat screen televisions keep falling, despite increasing demand?
read more...»The 21st IEA Hayek Memorial Lecture
Last week I attended the IEA Hayek Memorial lecture, given by Elinor Ostrom, Nobel laureate, on common resources and looking beyond government regulation.
The lecture took two parts: a presentation from Professor Ostrom, which was mainly focused on the research methodology, and a Q&A session, where anecdotal research evidence was more forthcoming.
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