Government Regulation of Big Tech, data usage, and Market POWER – Supply and Demand impacts on Consumer/Producer Surplus and the role of the Labor Market
Assignment Overview
You are to write an opinion paper/essay on one of the topics I outline below incorporating your own views along with empirical data, economic concepts related to the course, and recommendations for potential solutions from policy changes, legislation enactment and private sector self-regulation.
Once you choose a topic or sub-topic you need to define your argument, identify the “players” ( government agencies, private firms, consumer and producer groups/individuals, international organizations, or others) and the position you are taking.
This lead-in can take different formats: anecdotal, personal, hypothetical are all options.
Next, describe the current situation and summarize the research and opinions that have been communicated publicly through various channels.
Specify your first point related to the issue and present/discuss the evidence.
Include an acknowledgment of contrary points of view and their shortcomings.
The context can be related to downstream impacts, how realistic any proposed solutions are, incomplete or missing information, or ethnical/value-based components to the issue.
Repeat this exercise with your additional 2-3 major points.
Be clear about any assumptions that you are making and identify the Net Benefits (or lower losses) achieved when the implementation of the policies or regulations are completed.
Throughout the essay, integrate three (3) economic concepts that are part of Principles of Microeconomics.
There are chapters we will cover up to Thanksgiving break which provide additional theoretical background and explanation of differences in market power, pricing and cost variations, the role of the labor market and the impact of government intervention on the economy.
The essay will be graded according to what I have outlined above. Correctly interpreting aspects of economic principles in your writing is important.
I have identified a list of economic content areas that can be illustrated/highlighted within the context of your essay. This is not an exhaustive list but does cover much of the course:
Consumer behavior – tastes/preferences/income/consumer base
Opportunity cost changes for consumers and/or producers as well as the government
Consumer surplus/loss – including where appropriate any inequalities that are part of the issue
Producer costs, producer pricing, and producer market power
Changes in elasticities of demand and supply
Changes in input prices/number of firms/needed skilled workers
Labor market supply/demand implications – policy impacts
Potential impacts for international trade or goods produced abroad to serve those markets
Data markets and pricing strategies
Positive or Negative externalities from status quo and/or after implantation of changes
Efficiency improvements in terms of resource use and distributive effects for consumers and producers (i.e. small businesses, marginalized populations, lower-income consumers)
