Economics of Regulation
This course uses theoretical industrial organisation models as tools and analyse its application on competition policy and regulation. Our starting point would be the introduction of market definition and market power. We then consider the exercise of market power in a number of settings, such as through collusion, merger, vertical control, predation, and some non-price monopolization practices. Treatments of various potentially anti-competitive conducts in various guidelines, including the ACCC merger guideline and Trade Practices Act 1974, will be discussed.
In the last part of the course, we review the theory of economic regulation. The materials covered include the basic theory of regulation.
This is the last course in the applied micro economics sequence. For students considering taking this course as well as Industrial Organisation, the suggested sequence would be taking IO first. At least intermediate level of micro economics is required for students to excel in this course.
In addition to the learning outcomes for the material taught in the pass course graduate students will be:
– exposed to the main theoretical tools used by researchers in the field of Industrial Organization;
– have the capacity to use formally analyse competition policy issues.