The Economics of Regulation

Overview

Market outcomes can be undesirable when self-interested firms reduce welfare for consumers and society. This unit of study focuses on the regulation of firms in markets with imperfect competition. We analyse regulation of natural monopolies, focusing on the key issue of asymmetric information between the regulator and the monopolist. In this unit we also examine oligopoly markets in which firms can reduce welfare through collusion, price fixing and vertical restraints. Emphasising real-world examples, we examine competition policy and merger regulation.

Topic 01: The rationale for regulation

Topic 02: Tooling up: industrial organization

Topic 03: Distinction between regulation and competition policy

Topic 04: Regulation of natural monopoly

Topic 05: Externalities

Topic 06: Practical aspects of natural monopoly and externalities

Topic 07: Access regulation

Topic 08:Asymmetric information and intervention

Topic 09: Vertical restraints

Topic 10: Practical aspects of mergers and vertical restraints

Topic 11: Collusion