Description: Economics 33 is devoted to understanding how competition (or lack of competition) really works, in all sorts of industries, from oil exploration and steel-making, to banking, to telecommunications, to higher education, to athletic footwear. Firms in every industry engage in competition to some degree, based not only on price, but quality, variety, and advertising. While managers and owners of firms may strive for higher profits, those profits, if earned unfairly, may not be in the public interest.

In Economics 33, you will learn how the structure and behavior of firms and industries affect their performance (profitability and growth). You will study these effects through both economic models of industry and firm behavior, and empirical tests of those models. You will also learn about public policies which are intended to protect the public interest. Unfortunately for businesses and policy makers, the public interest includes a number of not always compatible goals, including:

	Fair prices (not too high or too low)
	Reasonable profits (not too high or too low)
	Efficient use of resources (both productive and allocative)
	A satisfactory rate of technological change
	Informative, but not deceptive or excessive advertising
	Equitable income distribution
	Promotion of social welfare

Economists and policy makers must decide which goals are most important, and how to promote those goals. Economics 33 will look at policies which affect competition including antitrust laws, various forms of government regulation, patent laws and licensing, and international trade regulations (e.g. the effects of free trade areas, such as the European Community, or NAFTA).

Requirements: Grades will be based on attendance, participation, quizzes, a midterm exam, a final exam, a project, and homework assignments.

Economics 33 is open to majors and non-majors. The only prerequisite is Economics 12.

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