Assignment: Argument and Market Failure
When a regulation is proposed, it is usually because a government agency is trying to solve a problem typically caused by a failure in the market. You are a market analyst in a corporate law firm.
For this assignment, you will consider the topic of large executive pay packages in U.S. corporations. The concerns about high executive pay are of two-fold: the individual CEO pay package may not reflect the performance of the corporation and the make-up of the pay package influences CEOs toward a short-term performance bias. This short-term focus for CEOs in financial industries may encourage risk-taking that can place the entire financial system in a crisis. You will take a position on whether or not a market failure is responsible for the concerns about high executive pay. In order for you to successfully complete this assignment, you will need a nuanced understanding of the different types of market failures and how they may apply to executive pay.
? Your introductory paragraph: introduce the topic of executive pay and your yes/no claim of whether this represents a market failure. If you are identifying a market failure as responsible for the proposed rule, identify how specifically the market has failed, using language discussed in your readings and lectures.
? Your first body paragraph should provide support for your claim using evidence provided from class notes and the assignment reading materials. You will need to cite these materials.
? Your second body paragraph should explain and support a counterclaim or best possible objection to your argument. If you answered that excessive executive pay was a market failure, then discuss why it is not a market failure. If you originally said that it was not a market failure, then discuss why it is a market failure. Provide evidence for whichever counterclaim you are making. Whichever direction you take it must be the best possible objection to your own argument. This is the most challenging section of the assignment as it requires you to think outside of your own operating logic.
? Your third body paragraph should rebut the counterclaim and establish the superiority of your position. Do not repeat the arguments made in the initial supporting paragraph, but rather point out the inherent flaws of the counterclaim. It will also allow for you to introduce new information as well. Consider the following:
"Attack" the assumptions that the counterclaim is making
"Attack" the omissions that the counterclaim may have
Your own clever "attack"
? Your conclusion should clearly articulate the reader's take away from your argument. How should this shape their outlook and/or their actions?
Formatting: 750-1000 words, 12 pt Times New Roman Single-spaced with double spacing between paragraphs; 1" margins on all sides APA citations where needed and a works cited/references page.