清华经管IMBA管理经济学课件8(1).pptVIP

THE SOCIAL COSTS OF MONOPOLY POWER 10.4 Rent Seeking ● rent seeking Spending money in socially unproductive efforts to acquire, maintain, or exercise monopoly. In 1996, the Archer Daniels Midland Company (ADM) successfully lobbied the Clinton administration for regulations requiring that the ethanol (ethyl alcohol) used in motor vehicle fuel be produced from corn. Why? Because ADM had a near monopoly on corn-based ethanol production, so the regulation would increase its gains from monopoly power. THE SOCIAL COSTS OF MONOPOLY POWER 10.4 Price Regulation If left alone, a monopolist produces Q