ULMS Electronic Module Catalogue
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title COMPETITION AND REGULATION
Code ECON337
Coordinator Dr O Gorelkina
Economics
Olga.Gorelkina@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2024-25 Level 6 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):
ECON233 INTRODUCTORY ECONOMETRICS FOR BUSINESS AND ECONOMICS; ECON221 MICROECONOMICS 1 

Modules for which this module is a pre-requisite:
 

Programme(s) (including Year of Study) to which this module is available on a required basis:
 

Programme(s) (including Year of Study) to which this module is available on an optional basis:
 

Teaching Schedule
  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

 5

         29
Timetable (if known)              
Private Study 121
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Assessment 3 Assessment Schedule (When) :2  0    60       
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Assessment 2 Standard UoL penalty applies for late submission. Assessment Schedule (When) :2  0    30       
Assessment 1 Non-standard penalty applies for late submission - Assessment Schedule (When) :2  0    10       

Aims

To apply the tools of microeconomics to the analysis of firms, markets, consumers and regulators in order to understand the nature and consequences of the process of competition and regulation. These tools will also be applied to the evaluation of competition and government policy.  This will extend knowledge and skills of microeconomic analysis by covering recent advances in theory as well as empirical analysis of relevant microeconomic topics.

Learning Outcomes

(LO1) Use economic principles, concepts and techniques to discuss and analyse: a) the power and limitations of competition as a force for market regulation; b) government policy to regulate market power to protect firms, consumers and employees.

(LO2) Apply standard frameworks, including verbal, graphical, mathematical and statistical representations of economic concepts and models, to explain and evaluate the effects of a range of behaviours by firms and regulators and how they are influenced by economic incentives.

(LO3) Identify and analyse current issues and problems in regulation and propose solutions.

(LO4) Compare, contrast and critically evaluate regulation of different industries and market failures.

(LO5) Communicate effectively orally and in writing and in accordance with project specifications

(LO6) Conduct independent research in applied economics

(LO7) Deliver a professional quality formal presentation by exhibiting: clarity and appropriate pace; logical structure; credibility; effective use of visual aids/technology

(LO8) Identify problems

(LO9) Analyse problems

(LO10) Offer viable solutions

(LO11) Use economic principles, concepts and techniques to discuss and analyse government policy and economic performance.

(S1) Adaptability

(S2) Problem solving skills

(S3) Commercial awareness

(S4) Teamwork

(S5) Organisational skills

(S6) Communication skills

(S7) IT skills

(S8) International awareness

(S9) Lifelong learning skills

(S10) Ethical awareness

Teaching and Learning Strategies

Teaching Method 1 - Lecture
Description:
Attendance Recorded: Not yet decided

Teaching Method 2 - Seminar
Description:
Attendance Recorded: Not yet decided

Syllabus
 

Introduction to Competition & Regulation
The rationale for regulation
Market structure – competition as a market regulator
Market failure – problems for competition as regulator
Regulatory basics: Strategies, incentives & enforcement
Who regulates the regulators?

Introduction to UK, EU & US competition policy
Regulating monopolies, mergers & restrictive practices (antitrust)
Understanding the legal framework
Relevant institutions & their roles
Rules & remedies
Evaluating competition policy

Price discrimination & other restrictive practices
Predatory pricing
Vertical restraints & tying
Restrictive practices

Issues in Competition Policy: Mergers, Market Definition and Market Power
Will a merger increase market power? The ‘SSNIP’ test.
Market definition: approaches in US & EU competition policy
Product markets and geographical markets

E vidence on market definition:
Own-price elasticities
Cross-price elasticities and diversion factors
Price parallelism studies
Consumer surveys
Evidence from related markets: does market power increase prices? Supermarket case study
Relation to market share tests
Market definition and abuse of dominant position cases

Privatisation, Regulation & Competition
Network industries – economies of scale & scope
Efficient pricing strategies
RPI-X & rate of return regulation
Privatisation, regulation & de-regulation of UK network industries
Telecoms & Energy

Regulation of Externalities: Environment & Health & Safety
Standard setting
Alternative policy instruments
Regulating risk
Valuation of non-market goods

Financial Regulation
Banking regulation
Self regulation
Regulation in the wake of the recent financial crisis

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.