Money, Monopoly & Market Intervention

Robert P. MurphyMises AcademyOctober 5, 2011

Lecture 1: First half of Chapter 10 of Man, Economy, and State

1st Half ofChapter 10 of MES

1. Course Description

2. Hutt and Mises on Consumer Sovereignty

3. Rothbard Critique of

Consumer Sovereignty

IV. Cartels

1. Physical Destruction2. Collusion3. Instability4. One Giant Cartel

V. Neoclassical Monopoly Analysis (in 1950s…)

VI. Modern Monopoly Analysis

I. Course Description

II. Hutt and Mises on Consumer Sovereignty

� Cases of Nepotism and Natural Beauty

III. Rothbard Critique of Consumer Sovereignty

●Individual, not consumer, sovereignty

●Market process much fairer than democratic elections

●No way in practice to isolate serving consumers versus striving for profits in ways that (allegedly) are anti-consumer

IV. Cartels

A. Cartels and Physical Destruction??

B. Cartels and “Collusion”

How is a cartel different from a merger, or the formation of a standard corporation?

C. Instability of Cartels

D. One Giant Cartel?

V. Neoclassical Monopoly Analysis (in 1950s…)

VI. Modern Monopoly Analysis