|Semester 2 Credit Value:||10|
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.
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.
|Scheduled Learning And Teaching Activities||Lecture||14||1:00||14:00||N/A|
|Guided Independent Study||Assessment preparation and completion||1||32:00||32:00||N/A|
|Guided Independent Study||Directed research and reading||1||25:00||25:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||4||1:00||4:00||N/A|
|Guided Independent Study||Independent study||1||25:00||25:00||N/A|
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.
The format of resits will be determined by the Board of Examiners
Exam tests understanding of the economic theory and its conclusions related to the regulation of industry and their application to real market situations.
Disclaimer: The University will use all reasonable endeavours to deliver modules in accordance with the descriptions set out in this catalogue. Every effort has been made to ensure the accuracy of the information, however, the University reserves the right to introduce changes to the information given including the addition, withdrawal or restructuring of modules if it considers such action to be necessary.