After Reading the Article, ANWSER THE THREE QUESTIONS
Paper, Order, or Assignment Requirements
The subject is Economics of Organizations, I will upload you two detailed instructions, stick on them please! Thank you very much!
Subject：Economics of Organisations
REQUIREMENT: after reading the article, ANSWER THE THREE QUESTIONS:
IMPORTANT: 1. STRICTLY FOLLOW THE GUIDES THAT THE TEACHER SAID (THE TWO PICTURES ABOVE)
2.Use relevant empirical evidence (e.g. tables of real world data and historical evidence) and examples in writing your answer.
- at least 20 references
- Using relevant diagrams
- Part (C) is worth more marks.
STRUCTURE： 1. introduction 300 WORDS
- MAIN BODY （REMEMBER, RE-NAME THE THREE SUB-TITLES) 1000 WORDS
2.1 THE FIRST QUESTION
2.2 THE SECOND QUESTION
2.3 THE THIRD QUESTION
3 conclusion 200WORDS
4 REFERENCES
ESSENTIAL READING（ attachment above )：Christopher Snowdon, Closing Time: who’s killing the British Pub?, Briefing 14:8 (London, Institute of Economic Affairs, 2014).
- Snowdon’s piece on the economic organization of the British pub is published by the Institute of Economic Affairs (IEA). The IEA is a think tank that generally promotes economic policies that are of a free market type (e.g. it favors deregulation and privatization). Snowdon does not make reference to either price or income elasticity in his paper, but much of his analysis rests on the demand for substitutes and complements. For instance, Snowdon appears to suggest that smoking and drinking pubs are complementary goods (Snowdon, 2014, pp.28-29). Likewise, his criticism of minimum pricing would have far more force if he related the price elasticity of demand back to the impact taxation would have. As he notes, ‘the wider failure to replace closed pubs with new establishments strongly suggests that the economic problem facing the pub trade is not lack of supply but lack of demand’ (Snowdon, 2014, p.22). Moreover, while Snowdon suggests that government failure exists in the policies surrounding pubs, he does not put much store by market failure considerations. By way of illustration, there is not much scope for externalities in his analysis. Hence it is easy to see why Snowden’s proposed policy prescriptions leans towards lower taxes and deregulation. Snowdon thus has implications for the study of economic organisation and reading this paper in conjunction with the text is essential to producing a satisfactory essay.
- after reading the article, ANWSER THE THREE QUESTIONS:
ESSAY QUESTIONS (100 marks in total)
- Snowdon observes that ‘publicans add less value than they did when they were responsible for keeping good beer and rotating their selection of beer’ (Snowdon, 2014, p.14). Explain why lagers bought in supermarkets/off licences are a much closer substitute for the same products bought in pubs than is the case for stout/ales (Snowdon, 2014, p.25). Why, according to Snowdon, has the switch in consumer preferences towards lager (and away from stouts/ales) undermined the pub industry? Explain the economic implications of the observation that beer and wine have become viewed increasingly as substitutes and why this shift has also undermined the viability of some pubs (Snowdon, 2014, pp.14-15).
(25 marks) - What is the PubCo business model? What role does Snowdon suggest it has played in the declining fortunes of the UK pub? What does Snowdon’s observation that ‘Since 1980, incomes have been generally rising and pubs have been generally closing’ (Snowdon, 2014, p.24) indicate about the possible income elasticity for beer and wine sold in pubs?
(25 marks) - Snowdon makes four key policy solutions in his report (reduce alcohol duty; reduce VAT and set a lower rate for cooked food; amend the smoking ban and abolish cumulative impact zones and the late night levy). With particular reference to the economics of organisations (e.g. demand and supply, externalities and the impact on public spending and tax revenue) write a short economic critique of the policies advocated by Snowdon. For example, consider how “binge drinking” and cigarette smoking both may be associated with negative externalities and how Snowdon’s policy proposals if implemented might change the incidence of such externalities.(50 marks)
