Sugata Bag  ::  Course 608 : Economics of Regulation

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 Readings and Lecture Notes

Lecture Notes

  1. Introductory Lecture
  2. Lec – 2: Rationale for Regulation, Types of Markets, Welfare Issues
  3. Lec – 3: Natural Monopoly and its issues
  4. Lec – 4: Market – definition, Industry Concentration, Competetion policy
  5. Lec – 5: Theories of Regulation
  6. Lec – 6: Aspects of Regulation as Contract Game 
  7. Lec – 7: Natural Monopoly regulation (Part -1: Under perfect information) and unknown cost)
  8. Lec – 8: Introducing Contract in Regulation (Adverse Selection Models) 
  9. Lec – 9: NM Regulation (Part -2: Loeb-Magat Case, Franchise Bidding: Competition for market)
  10. Lec – 10: Regulation under Asymmetric Information
  11. Lec – 11: Regulation of Patent (updated)
  12. Lec – 12: Price Controls Models – RoR, RPI etc
  13. Lec – 13: Regulating Natural Monopoly, Part-3: Baron-Myerson (1982) & Laffont (1994)
  14. Lec – 14: Public vs Private Enterprise Vs. Privatisation
  15. Lec – 15: Vertical Integration and Access Pricing
Text Book Readings

AS-2005 – “Regulation, Competition and Liberalization”, Armstrong, Mark and David Sappington, 2005.
AS-2003 – “Recent Developments in the Theory of Regulation”, Armstrong, M and D. Sappington, 2003.
Joskow (2006) – “Regulation of Natural Monopolies“, Paul Joskow

Essential Papers

1.* Hertog (2010) REVIEW OF ECONOMIC THEORIES OF REGULATION 
2.* Laffont (1994) – The new economics of regulation.pdf
2.* Baron & Myerson -1982- Regulating Monopolist with Unknown Costs – Econometrica.pdf
3
.* Willner 2004: Privatisation – A sceptical analysis
4. Harberger(1954)- Monopoly and resourse allocation – AER.pdf
5
. Posner (2001) -Theories of economic regulation
6. H Demsetz (1968), ‘Why regulate utilities?’, Journal of Law and Economics, Vol 11, No 1, April
7. C Crampes and A Estache (1998), ‘Regulatory trade-offs in the design of concession contracts’, Utilities Policy, Vol 7, Issue 1, March 

Readings on Case Studies

Binmore-Klemperer_2002_ British 3G auction.pdf
Domah & Pollitt 2000_The Restructuring and Privatisation of the Electricity Distribution and Social Cost Benefit Analysis.pdf
Joskow_01_California Electricity Crisis.pdf 

Topics not covered this time –
Lec – 11. Vertical Integration and Access Pricing
Lec – 12: Regulating Natural Monopoly (Part-III: Hidden Action)