KEY MESSAGE: Market Regulation gives readers the economic intuition to analyze the history of antitrust and regulation, diagnose current corporate strategy, and evaluate possible policy recommendations. Roger Sherman grounds modern examples in historical context and develops thought-provoking discussions to motivate readers from many different backgrounds. Introduction to Market Regulation; Competition as a Market Regulator; Problems for Competition as Regulator. The Regulation of Competition: Focus of the Law: The Modern Business Firm; Market Structure; Market Strategy; Market Innovation; The Origin and Development of Antitrust Law; Applications of Antitrust Law. The Regulation of Industries: Industry Regulation; Pricing Principles; Institutions of Industry Regulation;Postal Service; Communications Services; Communication for News and Entertainment; Transportation; Energy; Electricity. Social Regulation: Social Regulation of Markets; Pursuing Social Regulation; Environmental Protection; Worker Protection; Consumer Protection; Protecting against Effects of Firm Failure. For all readers interested in antitrust and regulation economics.

INTRODUCTION 1 Introduction to Market Regulation 1.1 Governmental Market Regulation 1.2 The Context of Market Regulation 1.3 Law and Politics 2 Competition as a Market Regulator 2.1 The Firm's Production Costs 2.2 Competition as Regulator 2.3 The Economic Welfare Goal of Market Regulation 3 Problems for Competition as Regulator 3.1 Entry and Exit Barriers 3.2 Monopoly 3.3 Differentiated Products 3.4 Externality 3.5 Imperfect Information 3.6 Transaction Costs

PART I THE REGULATION OF COMPETITION 4 Focus of the Law: The Modern Business Firm 4.1 The Business Firm and the Market 4.2 The Goal of the Firm 4.3 Corporate Finance 4.4 Hierarchy and Control 4.5 Corporate Mergers 4.6 Vertical Integration and Vertical Restraints 5 Market Structure 5.1 Market Structure 5.2 Duopoly and Oligopoly 5.3 Entry and Conditions 5.4 Concentration Measures 5.5 Empirical Evidence Appendix 5.1 Cournotrsquo;s Solution to Duopoly Appendix 5.2 Cournot from Monopoly to Many Firms Appendix 5.3 Entry in the Cournot Model Appendix 5.4 Stackelbergrsquo;s Leader-Follower Solution 6 Market Strategy 6.1 The Tools of Strategy 6.2 Price Competition Among Few Firms 6.3 Non-Price Competition 6.4 Advertising 7 Market Innovation 7.1 Intellectual Property and Technological Change 7.2 Appropriating Gains from Innovation 7.3 Patents and the Appropriability of Gains 7.4 Market Structure and Incentive for Innovation 7.5 Patent Races and Other Dynamic Effects of Competition 7.6 The Internet as an Example of Major Innovation 8 The Origin and Development of Antitrust Law 8.1 The Beginnings of Antitrust Policy 8.2 The Sherman Act 8.3 The Clayton and Federal Trade Commission Acts 8.4 Enforcement Agencies and Remedies 8.5 Should Courts Oppose Monopoly Conduct or Monopoly Power? 8.6 Government Control of Mergers 8.7 Unfair and Deceptive Practices Appendix 8.1 Horizontal Merger Guidelines Appendix 8.2 Time Line for Major Antitrust Legislation 9 Applications of Antitrust Law 9.1 The Firm and Market Structure 9.2 The Firm and Market Strategy 9.3 The Firm and Market Innovation

PART II THE REGULATION OF INDUSTRIES 10 Industry Regulation 10.1 When Competition Fails to Regulate 10.2 Competitive Markets or Government Intervention? 10.3 The Transformation of Regulated Industries 10.4 Economic Welfare Revisited 11 Pricing Principles 11.1 Peak-Load Pricing 11.2 Ramsey Pricing 11.3 Nonuniform Pricing 11.4 Access Pricing Appendix 11.1 Socially Optimal Pricing Appendix 11.2 Long-Run Marginal-Cost Pricing Appendix 11.3 Axiomatic Pricing 12 Institutions of Industry Regulation 12.1 Industry Regulatory Agencies 12.2 Regulated Enterprises 12.3 Rate-of-Return Regulation 12.4 Designing a Regulatory Mechanism 12.5 Price-Cap Regulation 12.6 The Role of Access in Transforming Regulated Industries Appendix 12.1 Rate-of-Return Regulation and Its Origins 13 Postal Service 13.1 The Budget-Constrained Public Enterprise 13.2 Creation of the United States Postal Service 13.3 Maximizing Welfare or Expenditure 13.4 Ramsey Pricing in the United States Postal Service