Cartelization of Competitive Markets: Visa & MasterCard Case Study

a) First write an introduction that should be about a page in length and can be made up of several paragraphs. The introduction should establish that you are the firm manager, give a brief summary of the circumstances you find yourself in, and the various ways that you will use economic theory to analyze and/or discuss themthroughout the paper. The introduction is a preview of all the points you will make in the body.b) You should then take three important concepts from the textbook (Chapters 1-10) that apply to your case, give them headings, discuss how the concepts relate to and explain the case, and the takeaway from those concepts. Feel free to write some smooth transitions between sections. It’s always good to have a structured flow to a paper which makes the paper feel unified.c) You will then close the paper out with a good conclusion that mirrors the introduction. It should also close in on one page in length. A good conclusion has important takeaways from your analysis including what you learned and what anyone reading the case should learn.HINT: If a first year college student read your paper (has not taken ECON308), what would they learn from your analysis that they would not know from simply reading the case itself? This is not a summary, but an analysis. Your analysis should have substance. Summaries will earn a ZERO!. Outline Model:

I. What is the case about?

II. Which economics concepts apply and why?

III. Analysis (should be using real data)

IV. Conclusion-main takeaways

Useful Ideas to Include:

1. Use concepts discussed in class

2. A successful analysis will include graphs, tables, formulas, calculations, etc.

3. Production topics (from Chapter 5)

4. Very important ideas to include: HHI, C4, Lerner Index, Rothchild

5. Categorize Market Structure and explain why this market structure applies