1. Health-Care Competition
In July 2004, The Federal Trade Commission issued
the results of a two-year study of competition and the health care industry.
Americans spend $1.6 trillion annually on health care, representing 14 percent
of GDP, a higher percentage than any other industrialized country in the world.
Yet, Americans have a shorter average life span than citizens of Japan and
many European countries. This leads to the obvious question, Why are
Americans paying more and not living longer? Read the FTC report at
http://www.ftc.gov/opa/2004/07/healthcarerpt.htm. What recommendations does the study make to increase
competition?
2. The De Beers Diamond Cartel
Read the introduction and first two sections
of Muireann A. Kelliher's article entitled
"Diamonds are Forever: An Econometric Investigation" at
http://www.maths.tcd.ie/local/JUNK/econrev/ser/html/try.html (the "Specification" section and subsequent sections of the paper require
the use of mathematical tools beyond the scope of an introductory economics
course).
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Why has the De Beers cartel lasted
so long?
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How does it operate?
