Module Catalogue 2018/19

ECO2011 : Economics of Regulation

  • Offered for Year: 2018/19
  • Module Leader(s): Dr Volodymyr Bilotkach
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semester 2 Credit Value: 10
ECTS Credits: 5.0
Pre Requisites
Code Title
ECO1002Economic Analysis
Pre Requisite Comment


Co Requisites
Code Title
ECO2003Economic Modelling
ECO2004Microeconomic Analysis
Co Requisite Comment



To develop students' understanding of the relationship between government and industry, focusing on the ways in which the public sector seeks to influence the conduct and performance of different sectors of the economy, mainly those characterised by monopoly.

Outline Of Syllabus

Topic 1. Introduction to Economic Regulation

Market failures and Normative Analysis of Regulation.
Monopoly and monopoly inefficiencies.
Natural Monopoly: Strong and Weak
Alternatives to regulation

Topic 2. Monopoly and regulation : Optimal Pricing
Ramsey Prices, Peak Load Pricing, Multi-part tariffs, Block Tarriffs.

Topic 3. Regulation under asymmetric information

Hidden Action and Hidden Costs. Loeb and Magat Mechanism. Baron and Myerson Mechanism

Topic 4. Regulation in Practice

Rate of Return Regulation (and uncertainty). Cost of Service Regulation. RPI-X
regulation. Other forms of regulation

Topic 5. Economic Theories of Regulation

Criticisms to Normative Analysis of Regulation. Stigler's Models of Regulation.
Peltzman's model of regulation. Becker's Models of Regulation.

Topic 6. Competition and Liberalisation

Regulation in Network Industries. Regulated Firms in Unregualted Markets.
Interconnection and Access Pricing. Dynamic issues in regulation

Topic 7. Regulation experience in Britain.

Learning Outcomes

Intended Knowledge Outcomes

1. Knowledge and understanding of different theories of regulation.

2. Knowledge and understanding of different methods of regulation using price controls.

3. Knowledge and understanding of other "non-price" methods of regulation.

4. Knowldege and understanding of selected cases in British regulation.

Intended Skill Outcomes

1.       Ability to analyse economic issues relating to the regulation of industry

2.       Have further developed skills in written communication and numeracy.

3.       Have further developed their skills to analyse and solve problems using economic analysis.

4.       Have further developed skills in planning and organising, initiative and adaptability.

Graduate Skills Framework

Graduate Skills Framework Applicable: Yes
  • Cognitive/Intellectual Skills
    • Critical Thinking : Assessed
    • Data Synthesis : Assessed
    • Active Learning : Assessed
    • Numeracy : Assessed
    • Literacy : Assessed
    • Information Literacy
      • Source Materials : Present
      • Synthesise And Present Materials : Assessed
  • Self Management
    • Self Awareness And Reflection : Present
    • Planning and Organisation
      • Goal Setting And Action Planning : Present
      • Decision Making : Assessed
    • Personal Enterprise
      • Innovation And Creativity : Present
      • Initiative : Present
      • Independence : Present
      • Problem Solving : Assessed
      • Adaptability : Present
  • Interaction
    • Communication
      • Oral : Present
      • Interpersonal : Present
      • Written Other : Assessed
    • Team Working
      • Collaboration : Present
      • Relationship Building : Present
  • Application
    • Commercial Acumen
      • Governance Awareness : Present
    • Social Cultural Global Awareness : Present

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Scheduled Learning And Teaching ActivitiesLecture141:0014:00N/A
Guided Independent StudyDirected research and reading125:0025:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00N/A
Guided Independent StudyIndependent study125:0025:00N/A
Teaching Rationale And Relationship

1.Lectures give overview of main theoretical ideas and how to obtain theoretical conclusions from economic models.

2.Seminars provide the opportunity for students to work in a group context, critically discuss issues and apply the theoretic developments to real world examples, and for solving analytical problems.

Reading Lists

Assessment Methods

The format of resits will be determined by the Board of Examiners

Description Length Semester When Set Percentage Comment
Written Examination1202A100Unseen
Assessment Rationale And Relationship

Exam tests understanding of the economic theory and its conclusions related to the regulation of industry and their application to real market situations.


Past Exam Papers

General Notes

Original Handbook text:

Disclaimer: The information contained within the Module Catalogue relates to the 2018/19 academic year. In accordance with University Terms and Conditions, the University makes all reasonable efforts to deliver the modules as described. Modules may be amended on an annual basis to take account of changing staff expertise, developments in the discipline, the requirements of external bodies and partners, and student feedback. Module information for the 2018/19 entry will be published here in early-April 2018. Queries about information in the Module Catalogue should in the first instance be addressed to your School Office.