(3) Goldman, Lakdawalla and Zheng (2009) claim that raising food prices can reduce
consumption in long term
(4) No clear link health/junk food – active people stay thin
(5) Yaniv, Rosin and Tobol (2009) argue that tax on fast food might have undesired effect
of making people cook more > cut their exercise time
(6) Research on tax on alcohol shows that main users are unaffected by increase in prices
4 Why make notes?
(a) To prepare for essay writing
(b) To avoid plagiarism
(c) To keep a record of reading/lectures
(d) To revise for exams
(e) To help remember main points
5 Note-making methods
The notes are paraphrased, not copied from the text.
The language is simplified and symbols are used.
7 Practice B
Source: Caballero J. and Poledna Z. (2010) European Business Prospects, London: University
Press, p. 351
Predatory pricing(PP) = using size to lower prices below cost to harm competitors
In USA 1890 Sherman Antitrust Act – example of govt. attempt to control monopolies
Butlow prices benefit customers + predation hard to prove legally
- good reasons for selling below cost (e.g. new product promotion)
- bundling (selling several items together) makes proof harder (i.e. calculating individual
profit margins)
Example: 5/09 EU fined Intel €1 bn. for PP against rival AMD – but very complex case and
Intel appealed verdict
8 Vocabulary revision
(a) Something sold for money management (e.g. insurance policy, bond or credit card)
(b) Causing social damage (e.g. crime)
(c) Limiting demand
(d) Tax system that penalises poorer people
(e) Laws that aim to prevent one business controlling a market
(f) Attempt by large company to use its power to cut prices to damage competitors
(g) Forcing rival companies out of business