1. What is the HHI? How is the HHI used in the Horizontal MergerGuidelines in the assessment of whet

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1. What is the HHI? How is the HHI used in the Horizontal MergerGuidelines in the assessment of whether mergers would be a problem?Give two economic rationales for using the HHI in mergerassessment. 2. Why should it be harder to prove a predation-based monopolization casethan an exclusion-based monopolization case?3. Describe, compare, and contrast rate-of-return regulation and price-capregulation, especially in the face of regulatory lag with the former anddifficulties committing to separating price from cost over time withthe latter. How are the Bluefield (1923) and Hope (1944) SupremeCourt decisions relevant?4. In his campaign, the president-elect named a variety of regulations hewould like to eliminate. What legal considerations will play a role inhow quickly regulatory agencies in 2017 could issue new regulations(whether or not they replace old ones)?5. Compare and contrast the role of command-and-control, emissions taxesand marketable emission permits (cap-and-trade) in regulatingpollution? What does the “Coase Theorem” tell us about why airpollution is something that cannot be optimally determined by themarket?6. Describe the basic consumer choice economics behind Peltzman’sargument regarding the perhaps surprising ineffectiveness of safetyregulation, and apply it to a rule requiring smoke detectors in homes.7. How is the “value of statistical life” number derived, and what does itmean?

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