Regulatory and pro-competitive policies have in recent years become increasingly important in the EU strategy. The achievement of a single market has been fundamental and in many ways, the centrepiece, from the economic point of view, of the European Union. The deregulatory and liberalization processes ongoing in most European countries have been pushed and harmonized by European Directives. On the other side the EU Institutions (both the EU Commission and the ECB) have repeatedly asserted the c
Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapt. 1, 2, 3, 4, 8
Viscusi, Harrington, Vernon ‘Economics of Regulation and Antitrust’ The MIT Press, chapt 11, 12, 14, 19)
Further materials are in the section on extended program.
Learning Objectives
The aim of the course is to put the students in the position to evaluate and understand the economic rationale of most recent reforms of infrastructure, utilities and transport sectors in the EU.
A thorough knowledge of these policies is essential for anyone willing to work within the EU Commission, a natural target for a graduate in International Relations and EU Studies.
Teaching Methods
Economics. Basics of mathematics.
Type of Assessment
Written examination with exercises and multiple choice questions.
Course program
1. Background: Introduction on IO
Oligopoly, monopoly, competition
-Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapt. 8
-Any of the following two books on IO covers the same material
Dennis Carlton & Jeffrey Perloff (2005). Modern Industrial Organization. Pearson.
Cabral, L. ‘Introduction to Industrial organization’ The MIT Press
2.Competition Policy
Competition Policy in the EU
-Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapt. 1
Market power and welfare
-Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapt. 2
Note: Advanced Material: (shaded) only sect. 2.3.5.2 and 2.4.3.1.
Market definition:
Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapter 3.
Note: Advanced Material: only section 3.3.1.6
Collusion
-Massimo Motta (2004), Competition Policy, Cambridge University Press: Chapter 4
Note: Advanced material: only section 4.2.5.1.
3. Regulation
Natural Monopoly
- Viscusi, Harrington, Vernon ‘Economics of Regulation and Antitrust’ The MIT Press (2005, chapter 11); OECD ‘Restructuring utilities for competition pp.1-27
http://www.oecd.org/dataoecd/6/60/19635977.pdf
RoR and the cost of capital:
-Viscusi, Harrington, Vernon ‘Economics of Regulation and Antitrust’ The MIT Press (2005, chap.12)
Grout Jenkins-Zalewska, and Grout Zaleska CMPO WP, 2001
OECD ‘Restructuring utilities for competition pp.1-27 http://www.oecd.org/dataoecd/6/60/19635977.pdf
Price cap regulation
-Mark Amstrong, Simon Cowan & John Vickers (1994). Regulatory Reform: Economic Analysis and British Experience. MIT Press. Chapter 6.
Public Firms and Privatization
- Viscusi, Harrington, Vernon, ‘Economics of Regulation and Antitrust’ The MIT Press (2005, chapter 14)
Social regulation, Regulatory Impact Assessment, Administrative Burdens in the EU
- Viscusi, Harrington, Vernon, ‘Economics of Regulation and Antitrust’ The MIT Press (2005, chapter 19)
- EU Commission (2009) ‘Guidelines on Impact assessment’ http://ec.europa.eu/governance/impact/commission_guidelines/docs/iag_2009_en.pdf
- EU Commission (2009) Annexes to Impact assessment guidelines http://ec.europa.eu/governance/impact/commission_guidelines/docs/iag_2009_annex_en.pdf
- International Standard Cost Model Manual http://www.oecd.org/dataoecd/32/54/34227698.pdf