2023-2024 / ECON0928-1

Economics of Competition and Regulation

Duration

30h Th

Number of credits

 Master in economics : general (120 ECTS)5 crédits 
 Master in economics : general (60 ECTS)5 crédits 

Lecturer

Axel Gautier

Language(s) of instruction

English language

Organisation and examination

Teaching in the first semester, review in January

Schedule

Schedule online

Units courses prerequisite and corequisite

Prerequisite or corequisite units are presented within each program

Learning unit contents

Today (September 2022), the gaz and the electricity prices have skyrocketted (prices are 10 times higher compared to one year ago), with dramatic consequences for consumers and energy-intensive firms.  The war in Ukrainia is responsible for these tensions on the gaz market but the market mechanism is also questionned and the European Commission discusses a possible re-regulation of the market.  And if yes, how should the market be regulated?    

In July 2018, the European Commission fines Google €4.34 billion for illegal practices regarding Android mobile devices to strengthen dominance of Google's search engine. This illegal conduct and the associated huge fine raise many questions.  Why is it illegal?  Is the fine proportionate?  Will Google change its behavior? And how?   Does the Commission managed to increase/restore competition on the market? The course of economics of competition and regulation aim at addressing these questions. 

These two examples show that markets exhibit failures and public authorities often intervene in the conduct of those markets.  There are several tools to intervene: market regulation (notably in network industries), competition policy (merger control, abusive practices, prohibition of state aids) and direct public service provision (in the rail market for instance).   The course of Economics of Competition and Regulation studies public interventions in a market economy and the tool used by the authorities to maintain/increase competition on the market. 

The course will present the main concept and tools of economic regulation and will be illustrated with many examples.

Provisional topic list:

Part 1: Regulation



  • Liberalization and market design (electricity, rail, telecom)
  • The current crisis in electricity market
  • Theory of incentive regulation
  • Tools for regulators: benchmarking
  • Regulation in practice: meet the regulator
Part 2: competition policy



  • Mergers
  • Abusive practices
  • Big techs
  • Competition policy in practice: meet the competition authority

Learning outcomes of the learning unit

Be able to use simplified economic and econometric models to understand a real-world problem in the fields of competition and regulation.

ILO: 2, 3, 5, 7, 11

Prerequisite knowledge and skills

This course is a master 2 course in economics and students need a strong economic background to enrol.   In particular, students should have followed the following courses:
-Industrial organization (Models of oligopoly)
-Game theory (Nash equilibrium) 
-Econometrics (OLS at least)
-Microeconomics (Utility maximization, consumer surplus, profit maximization, cost functions, etc.)

Planned learning activities and teaching methods

Teaching sessions (live): slides + reading list + online material + press coverage

Guest lecturer from regulators, competition authorities and regulated firms

Material and reading lists will be provided for the presentation by the students and the case. 

 

Mode of delivery (face to face, distance learning, hybrid learning)

Face-to-face course

Recommended or required readings

Reading list (scientific articles) will be provided

Exam(s) in session

Any session

- In-person

oral exam

Written work / report


Additional information:

Evaluation:
-Student's presentation of a paper + case (40%)
-Oral exam (60%)  

Work placement(s)

Organisational remarks and main changes to the course

This course will be given in English

Classes on Wednesday 9am-12.15pm  (Q1)

Slides and readings are available on line

Contacts

Lecturer: Axel GAUTIER Email: agautier@uliege.be Office I.49, BAT B31(ST) Tel: 04/366.30.53

Association of one or more MOOCs