ECO2011 : Economics of Regulation
- Offered for Year: 2024/25
- Module Leader(s): Dr Jonathan Jones
- 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 | |
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.
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.
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.
Reading Lists
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ECO2011's Timetable