- Viscusi, Harrington, Vernon ‘Economics of Regulation and Antitrust' The MIT Press, chapt 11, 12, 14, 19) ;
Further policy materials of EU institutions or OECD are indicated in the section on extended program.
Learning Objectives
The aim of the course is to put the students in the position to understand and evaluate the economic rationale of the logic of the competition policies and the most recent reforms of infrastructure, utilities and transport sectors in the EU, throught the lens of the implementation of the Single Market Pillar of the EU. An abstract knowledge of the theory behind those policies will be complemented with the practical knowledge of the policies implemented and single cases of reforms will be discussed. Attending students will also apply the conceptual schemes to a practical case of reform or a competition case of their choice. A comparative approach among countries or sectoral reforms will be adopted and they will be encouraged to express critical evaluation of single reforms in the light of economic theory and evidence. The Case studies for attending students will be the object of a Report/Essay with tight requirements and a presentation in English for the entire class with the objective of strengthening the communication and language skills of students. 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. Most jobs within EU institutions require and will require in the future as the topic of structural reform becomes pervasive and more relevant in the next EU budget, the extensive knowledge of regulatory and competition policies is an asset for students. Consequently, it is a factor of competiveness for students to be complemented with the relevant law and other social sciences, in particular the knowledge of the working of the political and legislative processes within the EU.
Prerequisites
Formally there are no prerequisists. However, fundaments of microeconomics and some familiarity with basic mathematics may be useful.
Teaching Methods
The course consists of two types of lessons: standard frontal lectures and interactive lessons based on readings that students are expected to complete on their own at home in the days prior to class. There will also be practice sessions dedicated to solving the exercises that are part of the exam program.
All materials, particularly presentations, exercises and related texts and solutions, will be published on Moodle with free access (no password, no limitations) for students of the School.
Type of Assessment
The course evaluation for attending students will be based on two parts: the final exam and participation in activities during the course.
The activities during the course include: in-class or homework exercises, and class participation in the discussion of readings that students are expected to complete on their own.
Non attending students will be evaluated only on the basis of the final written exam.
Course program
1. Production theory
a. Besanko Chapters 6, 7, 8
2. Competitive markets
a. Besanko Chapter 9
3. Monopoly
a. Besanko Chapters 11, 12
4. Market structure, competition, collusion
a. Besanko Chapter 13, 14
5. Introduction to competition policy in the EU
a. Motta chapter 1
6. Market power and welfare
a. Motta chapter 2
7. Market definition
a. Matta chapter 3
8. Collusion
a. Motta chapter 4
9. Mergers (Prof. Coco)
a. Motta chapter 5
10. Natural monopoly (Prof. Coco)
a. Viscusi, Harrington, Vernon chapter 11
11. Market design and liberalization (Prof. Coco)
a. OECD ‘Restructuring utilities for competition pp.1-27 http://www.oecd.org/dataoecd/6/60/19635977.pdf
12. Energy security (Prof. Coco)
a. (references will be provided)
13. RoR
a. Viscusi, Harrington, Vernon chapter 12
14. Price cap regulation
a. Mark Amstrong, Simon Cowan & John Vickers (1994). Regulatory Reform: Economic Analysis and British Experience. MIT Press. Chapter 6
15. Public Firms and Privatization
a. Viscusi, Harrington, Vernon chapter 14
16. Social regulation, Regulatory Impact Assessment, Administrative Burdens in the EU
a. Viscusi, Harrington, Vernon, ‘Economics of Regulation and Antitrust' The MIT Press (2005, chapter 19)
b. EU Commission (2009) ‘Guidelines on Impact assessment' http://ec.europa.eu/governance/impact/commission_guidelines/docs/iag_2009_en.pdf
c. EU Commission (2009) Annexes to Impact assessment guidelines http://ec.europa.eu/governance/impact/commission_guidelines/docs/iag_2009_annex_en.pdf
d. International Standard Cost Model Manual http://www.oecd.org/dataoecd/32/54/34227698.pdf
17. Financial market regulation (references will be provided)