EC326-Competition Policy and Economic Regulation

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2021/2

Module Convenor: Dr Minyan Zhu
Email: minyan.zhu@reading.ac.uk

Type of module:

Summary module description:

The module seeks to provide an in-depth introduction to the economic analysis of competition policy and economic regulation. Competition policy is a legislative framework enforced by competition (anti-trust) authorities to limit monopolisation and promote competition within industries. The economic aspects of competition policy are an area where economics ‘directly’ informs contemporary policies that regularly make the news headlines. Economic regulation is the activity of regulatory authorities to influence the price, quantity and entry/exit often in a particular industry where the market structure naturally favours a monopoly seller. The module explores the understanding of why competition policy and economic regulation are needed, how such intervention is implemented in practice and the implications of such intervention for economic welfare.

Aims:

Building upon your existing understanding of economic theory (from Microeconomics, and/or possibly Industrial Organisation), this module aims to broaden and deepen the understanding of key competition issues within industries and markets, and the theory and application of economic regulation.  More specifically, the module aims to:

• provide a grounding into the knowledge and understanding of the economic analysis that underlies the intervention of competition and regulatory authorities in various markets.


• give students analytical skills to understand problems of competition policy and economic regulation in all spheres –business, finance, public utilities etc.

provide students with the ability to analyse competition and regulation issues in terms of their implications for economic welfare. The approach is analytical but also looks at some real-world high-profile cases.

Assessable learning outcomes:

By the end of the module, it is expected that the student will be able to

• understand how firms’ practice can impact economic welfare


• explain what problems intervention in the form of competition policy and economic regulation is intended to address


• assess the consequences of such intervention on economic welfare


• engage with contemporary practice from an analytical perspective and appreciate how it is inform ed by economic theory

Additional outcomes:

The module provides the opportunities to improve students’ ability to work with case studies, to translate abstract concepts/theories into practical problem solving and enhance their facility with decision-making analysis including incentives, equilibrium and marginal analysis.

Outline content:

The module will be divided into two parts described below:

1. Core elements in competition policy including intervention in mergers along with policies towards collusion and market dominance.


2. Theoretical problems and applications of economic regulation including rationale for regulation, different forms of regulation, their consequences for economic welfare and regulatory applications in public utilities.

Brief description of teaching and learning methods:

Detailed guidance on the main topics of the syllabus and key references are provided in 10 x 2 hour sessions of lectures. Students are required to do a significant amount of reading of chapters of books, journal articles, sources and websites of national and international authorities/organisations. Lectures will involve considerable student input, often in the form of discussion based on allocated readings and case studies.

Contact hours:

	Autumn	Spring	Summer
Lectures		20	2
Guided independent study:
Wider reading (directed)		33
Exam revision/preparation			40
Advance preparation for classes		40
Revision and preparation		15
Essay preparation		30
Reflection		20
Total hours by term	0	158	42
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	60
Written assignment including essay	40

Summative assessment- Examinations:

One 3-hour unseen written paper, intended to be comprehensive of everything covered in the module.

Undergraduate examinations are held in the Summer term.

Summative assessment- Coursework and in-class tests:

A written assignment (worth 40% of the overall mark).

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A minimum weighted average mark of coursework and examination of 40%.

Reassessment arrangements:

Re-examination for all modules takes place in August/September of the same year.

Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):

1) Required text books:  Motta, M. (2004) Competition Policy: Theory and Practice, Cambridge. E-book is available from the Library at no extra cost; paperback price: around £46. Decker, C. (2015) Modern Economic Regulation: An Introduction to Theory and Practice, Cambridge University Press. Hard copies are available from the Library; paperback price: around £40

2) Specialist equipment or materials:  None

3) Specialist clothing, footwear or headgear:  None

4) Printing and binding:  None

5) Computers and devices with a particular specification:  None

6) Travel, accommodation and subsistence:  None

Last updated: 30 July 2021