Class Ecnomic Regulation and Markets

In this course we consider the role of independent regulators in the economy.

We discuss the reasons that justify a regulatory intervention, the role of independent regulators, what are the regulatory instruments and what are the consequences of this type of intervention.

We explore the regulatory practice in Portugal, discussing the role played by independent regulators, their statutes and intervention.

We also studied the role of the competition authority and the application of competition law.

1. Regulation in Portugal 

1.1. Independent regulatory authorities  

1.2. Legal framework and statutes 

2. Economic regulation 

2.1. The Concept of Economic Regulation 

2.1.1. Models of public intervention 

2.1.2. Theories of regulation 

2.1.3. Market Failures  

2.1.4. Public intervention tools  

2.2. Regulation of monopolies (natural) 

2.2.1. Concept of natural monopoly: efficiencies and inefficiencies 

2.2.2. Instruments to control profitability and encourage efficiency 

2.2.3. Public participation and economic balance 

2.2.4. Public tenders: competition for the market 

2.4. Asymmetric information and regulation 

2.4.2. Market response to asymmetric information 

2.4.3. Asymmetric information and regulation 

3. Competition rules 

3.1. Competition law and its application: Structure and fundamental concepts 

3.2. Agreements, concerted practices and decisions by business associations 

3.3. Abuses of dominant position 

3.4. Concentration and merger analysis: unilateral and coordinated effects 

The discipline is taught combining a theoretical and practical approach, alternating the teaching of theoretical concepts with the discussion of practical situations or numerical exercises

The reading of fundamental texts is encouraged.

In compliance with what is established by the University ‘s pedagogical rules, students can choose a continuous evaluation regime with the following rules:

1. A student should attend to more than 75% of the classes taught.

2. The continuous assessment system includes a Test, to be carried out at the end of the academic semester, and the presentation of a paper (in writing and oral presentation).

A student who does not opt for continuous assessment is assessed by a final exam

João Confraria (2010) ¿Regulação e Concorrência, Desafios do século XXI¿, Economia Colecção: Campus do Saber, - Nº10 Ano: 2010, 2ª Edição

Noll, Roger G., ¿Economic perspectives on the politics of regulation¿, in Schmalensee, Richard and Willig, Robert ed., ¿Handbook of Industrial Organization¿, Volume 2, North Holland, 1989, Chapter 22

Braeutigam, Ronald R. ¿Optimal policies for natural monopolies¿, in Schmalensee, Richard and Willig, Robert ed., ¿Handbook of Industrial Organization¿, Volume 2, North Holland, 1989, Chapter 23

Viscusi, W. Kip.; Vernon, John Mitcham; Harrington, Joseph Emmett, (1995), ¿Economics of Regulation and Antitrust¿, MIT Press

Robert Baldwin, Martin Cave, e Martin Lodge (2011), "Understanding Regulation: Theory, Strategy, and Practice¿, Second Edition, Oxford University Press

Bishop, S. and Walker, M. (2010), ¿The Economics of EC Competition Law: Concepts, Application and Measurement¿, Sweet and Maxwel