ECO2011 : Economics of Regulation
ECO2011 : Economics of Regulation
- Offered for Year: 2024/25
- Module Leader(s): Dr Tom Lane
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
Semesters
Your programme is made up of credits, the total differs on programme to programme.
| Semester 2 Credit Value: | 10 |
| ECTS Credits: | 5.0 |
| European Credit Transfer System | |
Pre-requisite
Modules you must have done previously to study this module
| Code | Title |
|---|---|
| ECO1100 | Economic Analysis |
Pre Requisite Comment
For incoming study abroad and exchange students:
The only requirement for a student taking this course is that they’ve taken any module which covers standard introductory microeconomics.
Co-Requisite
Modules you need to take at the same time
| Code | Title |
|---|---|
| ECO2101 | Microeconomic Analysis |
Co Requisite Comment
None
Aims
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
The module will be based around the following topics:
1. Introduction to Economic Regulation.
Market failures and Normative Analysis of Regulation. Monopoly and monopoly inefficiencies. Natural Monopoly: Strong and Weak. Alternatives to regulation.
2. Monopoly and Regulation: Optimal Pricing.
Ramsey Prices, Peak Load Pricing, Multi-part tariffs, Block Tariffs.
3. Regulation under Asymmetric Information.
Hidden Action and Hidden Costs. Loeb and Magat Mechanism. Baron and Myerson Mechanism.
4. Regulation in Practice.
Rate of Return Regulation (and uncertainty). Cost of Service Regulation. RPI-X regulation. Other forms of regulation.
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.
6. Competition and Liberalisation.
Regulation in Network Industries. Regulated Firms in Unregulated Markets. Interconnection and Access Pricing. Dynamic issues in regulation.
7. Further Topics in Regulation.
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. Knowledge 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.
Teaching Methods
Teaching Activities
| Category | Activity | Number | Length | Student Hours | Comment |
|---|---|---|---|---|---|
| Scheduled Learning And Teaching Activities | Lecture | 7 | 2:00 | 14:00 | PiP lectures |
| Guided Independent Study | Assessment preparation and completion | 1 | 30:00 | 30:00 | N/A |
| Scheduled Learning And Teaching Activities | Lecture | 1 | 1:00 | 1:00 | PiP lectures |
| Guided Independent Study | Directed research and reading | 1 | 33:00 | 33:00 | N/A |
| Scheduled Learning And Teaching Activities | Small group teaching | 3 | 1:00 | 3:00 | PiP seminars |
| Guided Independent Study | Independent study | 1 | 19:00 | 19:00 | N/A |
| Total | 100:00 |
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
Exams
| Description | Length | Semester | When Set | Percentage | Comment |
|---|---|---|---|---|---|
| Written Examination | 120 | 2 | A | 100 | N/A |
Formative Assessments
Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.
| Description | Semester | When Set | Comment |
|---|---|---|---|
| Prob solv exercises | 2 | M | Seminar questions provided |
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. The written exam will assess the debth and breadth of understanding of concepts and methods taught.
Online alternative in case in-person assessment cannot take place: Online exam.
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ECO2011's Timetable
Past Exam Papers
- Exam Papers Online : www.ncl.ac.uk/exam.papers/
- ECO2011's past Exam Papers
General Notes
Original Handbook text:
Welcome to Newcastle University Module Catalogue
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Disclaimer
The information contained within the Module Catalogue relates to the 2024 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 2025/26 entry will be published here in early-April 2025. Queries about information in the Module Catalogue should in the first instance be addressed to your School Office.