This assignment is related to the article “A matter of concentration”, The Economist, October 27th, 2018, page 72
Go to the following link for the article:
https://www.economist.com/finance-and-economics/2018/10/25/economists-think-antitrust-policy-should-pay-more-attention-to-workers
Question 1 (15 points)
The article indicated that monopoly in the labor market could be problematic, explain the logic behind. Would there be any potential violation of the Competition Act? If so, which clauses of the Act might be violated? Explain.
Question 2
The article mentioned that regulators should take monopoly in the labor market more seriously, and three different approaches on how to handle monopoly power were being mentioned. From the regulator’s perspective, explain the advantages and drawbacks of using each of the three approaches mentioned in dealing with monopoly in the labor market.
Question 3
In light of recent economics research, the Competition Bureau is evaluating the possibility of including the effect of corporate tie-ups on the labour market in the Competition Act. The Bureau is seeking suggestions from the public, what kind of suggestions would you provide? Explain.
Note: A good answer should look into factors, issues, and/or anti-competitive business practices that the Competition Bureau needs to take into consideration.
concentration”, The Economist, October 27th, 2018
