TheBusinessProfessor
  • Home
  • Academy
  • Resources
    • SearchBase
    • Media
  • Membership
    • Account
Select Page

Regulatory Capture – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Regulatory Capture?One difficulty with government price regulation is what economists call regulatory capture, in which the firms that are supposedly regulated end up playing a large role in setting the regulations that they will follow. When the airline...

Price Cap Regulation (Antitrust) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Price Cap Regulation?Price cap regulation is where the regulator sets a price that the firm can charge over the next few years. A common pattern was to require a price that declined slightly over time. If the firm can find ways of reducing its costs more...

Imperfect information

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Imperfect information?Every purchase is based on a belief about the satisfaction that the good or service will provide. In turn, these beliefs are based on the information that the buyer has available. For many products, the information available to the buyer...

Government and Social Insurance

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How Does the Government provide Social Insurance?Federal and state governments run a number of insurance programs. Some of the programs look much like private insurance, in the sense that the members of a group make steady payments into a fund, and those in the group...

The Moral Hazard Problem

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Moral Hazard Problem?Moral hazard refers to the case when people engage in riskier behavior with insurance than they would if they did not have insurance. For example, if you have health insurance that covers the cost of visiting the doctor, you may be...
« Older Entries
Next Entries »

Designed by Elegant Themes | Powered by WordPress