COURSE SYLLABUS

School of Management
The University of Texas at Dallas

Course: BA 4309 – 001 and 002 REGULATION OF BUSINESS

Call Number: 10211 / 10212
Instructor: Peter Lewin
Semester: Spring 2006
Start/End Date: Jan 9 – May 1, 2006

Course Information | Instructor Information | Student Evaluation | Course Schedule for section 001 | Course
Schedule for section 002 | Guide to Reading | Scholastic Dishonesty |

Click here for Past Tests | Click here for PowerPoint files |

Course Information
1. Course Description

A multitude of regulations affect our lives. - We examine government regulation of different types and at different levels. The
regulatory environment is a strange mix of decreasing regulation (deregulation) and increasing regulation (for example, as
governments and legal structures evolve mechanisms for dealing with new technological environments, like cable TV or
cellular phones).

The framework of analysis will be basic economic theory. We will use ideas from organizational behavior, strategic
management and related fields as well.

Attendance in class is very strongly encouraged. The tests will reflect class material as well as the texts.

Catalogue Description.
BA 4309 Regulation of Business (3 semester hours) Examines the broad subject of government regulation of business, and
focuses on the source of the demand for government regulation, its translation into legislation, its administration, and its
impact. Emphasis is placed on high impact regulatory programs, such as antitrust, health, safety, and environmental laws.

1. Prerequisites: ECO 2302 or equivalent.

1. Learning objectives

I would like students to take away from this course at least the following:

1). An appreciation of the power of economic reasoning for understanding the effects and causes of regulation
2). A facility for critically analyzing current regulatory issues
3). An understanding of the concepts of
§ economic efficiency – consumer and producer surplus
§ costs and benefits
§ and their multiple applications
4). An appreciation of the
§ importance of property rights for the achievement of freedom
§ the importance of economic freedom for the achievement of free and open societies
§ the economic-political process
§ the dangers of regulatory rent seeking
§ the importance of free trade
§ the limits of regulation
§ the effects of taxes and subsidies of different types
§ the workings of the market system is determining earnings (interest, profits, wages, salaries and rents)
§ the modern business firm, its function and its boundaries
1. the achievements of the American economic system.
2. Course Materials

The following texts will serve as a guide to our class discussions and are required.
 1. The Economics of Public Issues by Roger Leroy Miller et. al., Fourteenth edition, Addison Wesley, 2005. ISBN # 0-
321-30349 -0
2. Antitrust, The Case for Repeal by Dominick T. Armentano, Second Edition, The Ludwig von Mises Institute, 1999.
ISBN # 0-945466-25-0
3. Capitalism and Freedom by Milton Friedman, Paperback - 2nd edition (February 1963) University of Chicago Press;
ISBN: # 0-226-264-01-7
4. Give Me a Break by John Stossel, Harper Collins or Perennial Currents, 2004/5. ISBN:# 0060529156

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3. . Here are some links with additional information

1. to articles relevant to our discussion of monopoly and anti-trust.

1. Editorial from the Wall Street Journal, January 24, 2001 – on California and its problems.
2. Notes on monopoly (mine).
3. Barriers to entry by D. T. Armenatano
4. Dismal Science Fictions: Network Effect, Microsoft, and Antitrust Speculation by Stan
Liebowitz and Steve Margolis.
5. Articles in the Freeman on Antitrust – worth reading!

2. to other stuff.
1. Armen Alchian on Property Rights
2. Hernando de Soto on Capitalism and Poverty
3. Read John Stossel on his book “Give me a Break”
4. Listen to John Stossel on his book “Give me a Break”
5. The Pursuit of Happiness in Romania -- A Five Part Mini-Documentary
6. The Milton and rose Friedman foundation on educational choice
7. Milton Friedman editorial on Vouchers in the WSJ 06/09/2005
8. Cato conference on educational choice (2003)
9. To Drill or Not to Drill: Let the Environmentalists Decide
10. The Coming Doctor Shortage!!
11. John Goodman on Health Care
12. Richard Epstein on Takings
13. Linda Chavez on Comparable Worth

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Instructor Information

1). Instructor brief biography

I was born and grew up in Johannesburg, South Africa. I received a BA (honors) degree in Economics and History from
the University of the Witwatersrand in Johannesburg in 1969. In September 1972, after teaching at the business school
at that University, I left to study at the University of Chicago. I received a Ph.D. in Economics from the University of
Chicago in 1979. I was fortunate to have as teachers at least four Nobel prize winners. In January 1979 I moved with my
family to Dallas, where we have lived ever since. After seven years as an academic, I tried my hand in an
entrepreneurial venture and joined a friend in a startup business called Soft Warehouse. Today it is called CompUSA. I
was one of its founding shareholders. It was a difficult but very educational experience. In 1992 I decided to return to
academics and have been with the UTD School of Management since 1997. I love my job. I have a passion for teaching
and for economics.

My wife and I were married in December 1969. We have four children and two grandchildren.

To see more about my professional and personal life visit my website at http://www.utdallas.edu/~plewin/

2). Contact information

You may contact me using the Mail facility provided for this course. See the explanation under Communications
below.

Other contact information is:

Email: plewin@utdallas.edu
Phone: 972-883-2729
Office: SM 3.223, UTD

You can contact me anytime by phone or email, and see me by appointment in my office.
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Course Outline for Section 001

The table below outlines the reading assignments for each class The reading assignments follow below.
Week Tues Topic Thurs Topic
1 01/10 Basic concepts, trade offs, theories of 01/12 Basic concepts, trade offs, theories of
regulation regulation

2 01/17 Basic concepts, trade offs, theories of 01/19 Crime and prohibition, price fixing
regulation
3 01/24/ Crime and prohibition, price fixing 01/26 Crime and prohibition, price fixing
4 01/31 Crime and prohibition, price fixing 02/02 Crime and prohibition, price fixing
5 02/07 Miscellaneous topics - abortion, slavery, water 02/09 Miscellaneous topics - abortion, slavery,
rights, smuggling, agricultural policy water rights, smuggling, agricultural policy

02/10 -02/12 Test 1 online 02/10 -02/12 Test 1 online

02/10, 12: 00 a.m., - 02/12, 11:55 p.m 02/10, 12: 00 a.m., - 02/12, 11:55
6 02/14 Anti-trust (monopoly, natural monopoly, 02/16 Anti-trust
policy, Microsoft).
7 02/21 Anti-trust 02/23 Anti-trust

8 02/28 Anti-trust, Free Trade 03/02 Anti-trust, Free Trade

9 03/07 Spring Break 03/09 Spring Break
10 03/14 Public Education - a state monopoly 03/16 Public Education - a state monopoly,
Health Care, Medicare and Social Security
11 03/21 Health Care, Medicare and Social Security 03/23 Health Care, Medicare and Social Security

03/24 – 03/26 Test 2 online 03/24 – 03/26 Test 2 online

available 03/24, 12: 00 a.m., - 03/26, available 03/24, 12: 00 a.m.,
11:55 p.m 03/26, 11:55 p.m
12 03/28 The Environment 03/30 The Environment
13 04/04 The Environment 04/06 The Environment
14 04/11 The Environment (general principles, air, 04/13 The Environment
water, resources, policy)
15 04/18 The Environment (regulation of labor 04/20 (regulation of labor online)
online)
16 04/25 Finals week (to be announced)

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Course Outline for Section 002

The table below outlines the reading assignments for each class The reading assignments follow below.
Week Tues Topic
1 01/10 Basic concepts, trade offs, theories of regulation

2 01/17 Basic concepts, trade offs, theories of regulation,

Crime and prohibition, price fixing
3 01/24/ Crime and prohibition, price fixing
4 01/31 Crime and prohibition, price fixing,
Miscellaneous topics - abortion, slavery, water rights, smuggling, agricultural policy
5 02/07 Miscellaneous topics - abortion, slavery, water rights, smuggling, agricultural policy

02/10 -02/12 Test 1 online

02/10, 12: 00 a.m., - 02/12, 11:55 p.m
6 02/14 Anti-trust (monopoly, natural monopoly, policy, Microsoft).

7 02/21 Anti-trust

8 02/28 Anti-trust, Free Trade

9 03/07 Spring Break
10 03/14 Public Education - a state monopoly, Health Care, Medicare and Social Security
11 03/21 Health Care, Medicare and Social Security
 03/24 – 03/26 Test 2 online
available 03/24, 12: 00 a.m., - 03/26, 11:55 p.m
12 03/28 The Environment
13 04/04 The Environment
14 04/11 The Environment (general principles, air, water, resources, policy)
15 04/18 The Environment (regulation of labor online)
16 04/25 Finals week (to be announced)

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Guide to Reading

Topic Reading
Basic concepts, trade offs, theories of regulation F. Preface;1,2 M 1-4; S. Introduction, 1 -
7,11,12, 13, 15
Crime and prohibition, price fixing M. 5, 6, 11, 13, 22, S. 8, 14
Miscellaneous topics - abortion, slavery, water rights, M. 7 - 10, 20
smuggling, agricultural policy
Anti-trust A. 1 - 7, F. 8; M. 15 - 19 M. is Miller,
Anti-trust, Free Trade M 29 - 32 A. is Armentano
F. is Friedman
Public Education - a state monopoly F. 6, 7 Video, Elder
S. is Stossel
Health Care, Medicare and Social Security M. 12, 23; F. 9 - 12
The numbers refer
The Environment M 14, 21, 24-28, S. 10 to the chapters.

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Student Evaluation

There will be three tests, two online midterms and one on-campus final.

The mid-terms test will count 25% and the final will count 50%. The tests will be composed of multiple choice questions. Past tests
provide examples as we go along for you to practice.

Test 1 25 questions online available 02/10, 12: 00 a.m., - 02/12, 11:55 p.m; 1 hour time limit
Test 2 25 questions online available 03/24, 12: 00 a.m., - 03/26, 11:55 p.m; 1 hour time limit
Final 50 questions Final Test,– on campus

The midterms are NOT comprehensive. The final will have 25 (of the 50) questions comprehensive
Online Testing
You can access tests by clicking the "Tests" link on the course menu and then clicking the available test title links. Each test
is timed and can only be accessed once within the scheduled time window. Please read the on-screen instructions carefully
before you start the test. You may review your test results after the test results are released.

Scholastic Dishonesty

The University of Texas at Dallas has policies and discipline procedures regarding scholastic dishonesty. Detailed
information is available on the Scholastic Dishonesty web page. All students are expected to maintain a high level of
responsibility with respect to academic honesty. Students who violate University rules on scholastic dishonesty are subject
to disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since such
dishonesty harms the individual, all students and the integrity of the University, policies on scholastic dishonesty will be
strictly enforced.

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