Managerial Economics

Question for the  DQ Responses

Article 1 - The Future Of TV Is Here. Can Cable Survive? (Satell, 2015)

This article was mentioned by the case of study of Baye and Prince (2017), it relates how the demand for entertainment has been changing in the last two decades. Satell (2015) said that cable companies like Times Warner do not have a sustainable business model today, after the revolution of broadcasting companies, like Netflix and Amazon Video.

Article 2 - Trying to promote network entry: From the chain broadcasting rules to the channel occupancy rule and beyond. (Besen, 2014)

This article presents the efforts of the American Federal Communications Commission (FCC) to divulge the entry for new networks. It also explains how the regulation of cable networks works, this information will support the answer of the regulatory implications on Time Warner’s operation and strategic decisions.

Article 3 - Misregulating television: Network dominance and the FCC. (Besen et al., 1984)

This article from almost 40 years ago demonstrates the useless effort of FCC to encourage the new entry competitors in this industry by placing additional restrictions on the dominants, like Time Warner. This article discusses the perspective of the Financial Interest and Syndication rules of this market.

Article 4 - Open Access to Broadband Networks: A Case Study of the AOL/Time Warner Merger. (Rubinfeld and Singer, 2001)

This article analyzes the effects of the controversial merger of AOL and Time Warner. Rubinfeld and Singer (2001) discuss the vertical integration of the cable provider in the market of broadband internet access and content.

Article 5 - The Time Warner story: Consolidation, de-consolidation and re-consolidation (Byers, 2016)

This article presents the history of consolidation, de-consolidation and re-consolidation of Times Warner. Byers (2016) demonstrates the timeline from the time in 1923, when Time Magazine was created to AT&T acquisition by the end of 2017.

Article 6 - Time Warner Cable to Pay $1.9 Million Penalty for Violating the Risk-Based Pricing Rule (Federal Trade Commission, 2013)

This article relates the violation of Time Warner over risk-based pricing regulation. As seen in class about the strategy of pricing discrimination, this company received a penalty because it did get prospective clients’ credit reports to analyze if they will qualify for its service.

Question 2 write DQ response

Environmental sustainability is characterized as a responsible relationship with the environment to avoid natural resource depletion or degradation, and to enable long-term environmental quality. And when it comes to economics, the environmental sustainability practice for example in strategic plan, helps ensure that the needs of today's business are met without jeopardizing future business' decisions to meet their set goals. Sustainability is made up of three pillars: the economy, society, and the environment.

On the other hand, according to Guell (2015), sustainability is a concept for development which requires all available renewable natural resources to be used only as much as they can be replaced. In the current ‘society of consumers” the preservation of natural resource is a concern of every business. For the past few decades, the business stared to look at the environment and the natural resources as a non-ifinite bag of goods. The companies also found that being eco-friendly have a positive financial impact. An example for that are big companies like Walmart, which zero waste packaging policy, where there is less packaging through supply and more packaging to be sourced from recycled or reused materials brought them benefits acting as an environmentally sustainable company.

In conclusion, if a growth of a company these days continues without environment sustainability then it is obvious that the business will face scarcity of resource, damages and extinction of resources. Hence, every organization needs to protect its environment especially if it wants to last for long in this environment.

References:

Guell, Robert C. (2015). Issues in Economics Today , 7th edition- 2015 ISBN: 978-0078021817