EC365-6-SP-CO:
Theory of Monopoly and Regulation
2023/24
Economics
Colchester Campus
Spring
Undergraduate: Level 6
Current
Monday 15 January 2024
Friday 22 March 2024
15
24 August 2023
Requisites for this module
EC202
(none)
(none)
(none)
(none)
BA 9L11 Management Economics (Including Placement Year),
BA L108 Management Economics,
BA L190 Management Economics (Including Foundation Year),
BA L192 Management Economics (Including Year Abroad),
BSC 5M00 Management Economics (Including Placement Year),
BSC L109 Management Economics,
BSC L191 Management Economics (Including Foundation Year),
BSC L193 Management Economics (Including Year Abroad),
MECNL133 Management Economics,
MECNL134 Management Economics (Including Placement Year),
MECNL135 Management Economics (Including Year Abroad)
The module studies monopoly industries: the sources, creation and exercise of monopoly power and the principles and practice of monopoly regulation.
The module starts by examining decision-making of the monopoly firm, covering pricing and non-price behaviour, and examines welfare implications of these practices. Creation of monopoly power through merger and monopolisation is considered next. The concept of a natural monopoly is defined and its relevance across a range of industries is explored. Turning to regulation of monopoly, the module focuses on difficulties arising from the asymmetry of information between regulator and firm, exploring how price controls may be applied in this context. Finally the module discusses liberalisation and the role of industry structure. The issues are illustrated with examples from competition cases and monopoly regulation in the UK and other jurisdictions.
The aim of this module is:
- To provide students with an understanding of the many aspects of monopoly behaviour and the problems these raise for regulatory policy.
By the end of this module, students will be expected to be able to:
- Formulate and analyse the decision-making of a monopolist.
- Assess the welfare effects of these decisions.
- Describe the difficulties faced by a regulator in controlling these behaviours.
- Explain the role of industry features and structure.
- Discuss the process of liberalisation.
- Illustrate these problems with examples from real-world industries.
Transferable Skills
Students who successfully complete the module will gain the following employability skills:
- Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT.
- Students are encouraged to carry out research and information gathering for term papers and as background reading.
- External awareness is promoted through real-world case studies and learning about regulatory institutions and behaviour.
- Opportunities to develop professional working skills, including teamwork and presentation skills, are provided through student debates.
No additional information available.
The module will be delivered via:
- One two-hour lecture per week in one term.
-
Cabral, L.M.B. (2017a)
Introduction to industrial organization. Second edition. Cambridge, Massachusetts: The MIT Press. Available at:
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=2620673&site=eds-live&authtype=sso&custid=s9814295.
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Carlton, D.W. and Perloff, J.M. (2005i)
Modern industrial organization. 4th ed. Boston: Addison Wesley. Available at:
https://ebookcentral.proquest.com/lib/universityofessex-ebooks/detail.action?docID=5174991.
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Church, J.R. and Ware, R. (2000d)
Industrial organization: a strategic approach. Boston: Irwin McGraw Hill. Available at:
https://works.bepress.com/jeffrey_church/23/.
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Cabral, L.M.B. (2017i)
Introduction to industrial organization. Second edition. Cambridge, Massachusetts: The MIT Press. Available at:
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=2620673&site=eds-live&authtype=sso&custid=s9814295.
-
Carlton, D.W. and Perloff, J.M. (2005h)
Modern industrial organization. 4th ed. Boston: Addison Wesley. Available at:
https://ebookcentral.proquest.com/lib/universityofessex-ebooks/detail.action?docID=5174991.
-
-
-
HAY, G.A. (1985) ‘Vertical Restraints’,
Fiscal Studies, 6(3), pp. 37–50. Available at:
https://doi.org/10.1111/j.1475-5890.1985.tb00407.x.
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Milgrom, Paul1 (no date) ‘Auctions and Bidding: A Primer.’,
Auctions and Bidding: A Primer., 3(3), pp. 3–22. Available at:
https://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=4432733&site=eds-live.
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Church, J.R. and Ware, R. (2000c)
Industrial organization: a strategic approach. Boston: Irwin McGraw Hill. Available at:
https://works.bepress.com/jeffrey_church/23/.
The above list is indicative of the essential reading for the course.
The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students.
Further reading can be obtained from this module's
reading list.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Coursework |
EC365 Term Paper |
|
|
| Exam |
Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period)
|
| Exam |
Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Prof Daniel Garrett, email: d.garrett@essex.ac.uk.
Lectures: Prof Daniel Garrett / Classes: Miss Ashley Burdett
For further information, send an email message to fineco@essex.ac.uk.
Yes
Yes
No
Dr Giancarlo Ianulardo
University of Exeter Business School
Lecturer in Economics
Available via Moodle
Of 29 hours, 29 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s), module, or event type.
Economics
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