Market outcomes can be undesirable when self-interested firms reduce welfare for consumers and society. This unit of study focuses on the regulation of firms in markets with imperfect competition. We analyse regulation of natural monopolies, focusing on the key issue of asymmetric information between the regulator and the monopolist. In this unit we also examine oligopoly markets in which firms can reduce welfare through collusion, price fixing and vertical restraints. Emphasising real-world examples, we examine competition policy and merger regulation.
1x2hr lecture/week, 1x1hr tutorial/week
500wd equivalent problem sets (10%), 1x1.5hr mid-semester test (40%), 1x2hr final exam (50%)
ECOS2001 or ECOS2901 or ECOS2040