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Unit of study_

ECOS3025: The Economics of Regulation

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.

Code ECOS3025
Academic unit Economics
Credit points 6
Prerequisites:
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ECOS2001 or ECOS2901 or ECOS2040
Corequisites:
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None
Prohibitions:
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None

At the completion of this unit, you should be able to:

  • LO1. justify regulatory intervention
  • LO2. understand the fundamental trade-offs involved in regulation
  • LO3. understand regulation versus competition policy
  • LO4. solve problems.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.