Chapter 12 or 25. Government & Product Markets: Pre-Class & In-Class ActivRies Packet NanW'I.D. Number: Section: Part 2. Matching: Match the Key terms in Column "A" Wfth the definitions in Column "B" by writing the block (upper) case letter Of your choice under column "A" and match the definitions in column "B" With the meanings or examples or real world applications in column "C" by writing the small (lower) case letter Of your choice under column "B" Column "A" I. Antitrust Law 2. Trust 3. F#ndahl Index (HI) 4. Horizontal Merger 5. Vertical Merger 6. Conglomerate Merger 7. Network Good 8. Lock-In Effect 9. Regulatory Lag 10. Capture Theory Of Regulation II. Public Interest Theory Of Regulation 12. Public Choice Theory Of Regulation Column "B" A. A merger between companies in the same industry at different of the ggcdBon process B A merger between tMt are simibr pcdzts in the same market C A *ose oalue inuezes as number of units sold incuses. D The siation a product or tchnology the standard and or imgosste to disloqe as the E time period tetw when a retural monopolfs costs change and when the regulatcry agency adjusts for it F. A of firms Nt cone together to act as a monogdist An index that measures the degr of concentratn in an industry, equal to sum of the of market shares of firm in the industry H *aton for tre stated purpose of controllirg monogdy powe & and ggcnoMg ccngetitZn A theory that regulators are W.ing dcand will do through is tre best interest (spebfic*y to their ;cwer nd the size and of their regntory ageros)_ J. A between comwies different h%stries. K A theory holding that no matter what the motive is for . the initial regulan & the establi*.ment of gubtcry eventua4 the agency will be captur" by the *Gal interests of G-stry being L. A th&yy that regulabs are to will 'ro-gh is in the test interest of the umn a. R*Ation tet promotes the general publics welfare rater than he interests of wellorganized stakeholders b. Laws that Ates tre conduct organization of busiesses, aty b promote fair compeMion for the benefit of cusunvs_ C. A type of earacterized by business consolidati:n Mt occurs between fms o;erate in the same space, often as corn*'tors offering the same servZe to utilize economies of Eale & increase market share Exam*e, the merger of HP and Compaq. d. A business interestswit signifcant market powe. e. A situaim that makes a customer degerentm a oendorfiy products and semices. unik to use anomer verdor wittout substantiS switching costs Example, me more a sty a certam more unlikely users are to switch. f. RegUation ts cn prense that all Muduals, Muding seruants, are fiven by self-interest. g. A tin-e lag in im*mentaticn. for exanvle, a period of between a utilitys for new rates and the wanting of fre rates by utilty commissions. h. A wt.:se value to one the more that other consnersusethegood Exam*e, Facebook or Match.corn I. A tyve of that occurs between convanies where buys or from or to the other. the goal of which is imprming a efficiency or redLEing osts by contirg them Uder one cwnershO Example, the 1996 merger of Tirm Warner Inc. and the Tumer of CNN. J. Regulate. Nolds trt gmernmt relations often end serving the regulated fins rather han the tax paygs_ k. A type of merger trmed b becane a ccgoraticn that owns compars in Mferent idustries Example: Buffet's Berksher Matway Co. I. A measue of market corcentratjon by squaring market of each Irm cmnpetirg a market and then summing the ultjrg umbers It can from Nose to zero mm to 1 000 Moro