AQA Economics Unit 3
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Monopoly Power: Heathrow criticises price-cap plans

Monopoly Power: Heathrow criticises price-cap plans | AQA Economics Unit 3 | Scoop.it
Heathrow Airport criticises the Civil Aviation Authority's proposed price controls on the fees it can charge airlines.

Via Matt Smith
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Matt Smith's curator insight, October 3, 2013 2:12 PM

Lots of good economics in this. Heathrow have  some Monopoly Power over airlines need need to pay for landing slots at the airport. The Civil Aviation Authority have capped the price increases that Heathrow can charge airlines. This is the sort of issue that students should be trying to get their head around.

James Cockburn's curator insight, February 2, 2014 4:37 PM

Being the biggest airport in Britain, London Heathrow had been able to charge fees that were rising above RPI inflation, so using its monopoly power. This proposed intervention would prevent the airport doing this

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Minimum wage increases to £6.31

Minimum wage increases to £6.31 | AQA Economics Unit 3 | Scoop.it
The national minimum wage rises to £6.31 for adults in the UK, an increase of 12p an hour, and by 5p to £5.03 for 18-to-20-year-olds.
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Video on Perfect Competition

Perfect Competition Video. All the theory.


Via Matt Smith
Stuart Jackman's insight:

May be useful for those who struggled with the essay today

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Microsoft's Ballmer: Google Is A "Monopoly" - Marketing Land

Microsoft's Ballmer: Google Is A "Monopoly" - Marketing Land | AQA Economics Unit 3 | Scoop.it
Microsoft, the company stung a decade ago in the US by being branded a monopoly and then in Europe by having to pay and pay again for its past tactics, is.
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Memo to WaPo: Price discrimination does not imply monopoly | TechPolicyDaily.com

Memo to WaPo: Price discrimination does not imply monopoly | TechPolicyDaily.com | AQA Economics Unit 3 | Scoop.it

In a blog post at the Washington Post’s “The Switch” site yesterday, the usually reliable Timothy B. Lee set out to analyze pricing in the market for Internet access services.  I have a lot of respect for Tim, but his blog contains some pretty fundamental economic errors that need to be set straight.

 

Most important, the blog buys into the long-discredited notion that price discrimination implies monopoly power.  Reviewing Comcast’s tiered pricing plans (faster access costs more), it concludes – correctly – that “Comcast is engaged in what economists call price discrimination.” But then it goes on to opine that “Comcast’s strategy only works because Comcast faces limited competition in many markets.” That’s wrong.

 

Economists have understood since at least the early 1980s that price discrimination can and does occur in competitive markets where there are large sunk costs. (Then, the issue was airline pricing.)  Not only that, but it is widely understood that price discrimination in such markets is not only possible, but necessary, and not only innocuous, but welfare maximizing.

 

I would be remiss if I failed to point out that much of the seminal work on this topic was done right here at AEI, by Bill Baumol and others. As Baumol concluded in a 2005 AEI Distinguished Lecture, in high tech markets “discriminatory prices are not haphazard in their welfare properties but will generally constitute a Ramsey optimum.” But I should also note that the concept is accepted by virtually all competition economists, and that there is widespread agreement that it occurs in high-tech markets. As Jonathan Baker wrote (a decade ago):

 

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Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc
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Has Tesco become a monopoly? - Channel 4 News

Has Tesco become a monopoly? - Channel 4 News | AQA Economics Unit 3 | Scoop.it
Britain's largest supermarket has become a monopoly, argues economist Andrew Simms in his new book. Not so, replies Tesco.
Stuart Jackman's insight:

Interesting - I have the book if anyone wants to borrow it. 

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Firefighters strike in pensions row

Firefighters strike in pensions row | AQA Economics Unit 3 | Scoop.it
Firefighters in fire services across England and Wales go on strike for four hours from midday in a dispute over pensions.
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