MGEC61H3 Lecture 5: MGEC92-Writing_Assignment_FALL_2017 (2)

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The report is worth 10% of your final grade. It has been claimed that the rise of online retailing has caused the decline of so-called bricks and mortar retailing such as at sears and other retailers. This line of reasoning claims that online retailers, such as amazon or alibaba, are growing very large, powerful and competitive killing off many competitors which may, in the end result in less competition overall. This line of reasoning argues that the large online retailers should be regulated more by governments as a means to reduce their power and preserve competition and raise social welfare. Another line of reasoning claims that the rise of online retailing has resulted in greater product choice (variety), lower prices, more shopping and delivery options than in the past and more competition overall. As such according to this line of reasoning online retailers do not need to be regulated more than (they are presently).

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