Regulation of Business

Module code: EC7101

In this module you will study competition policy, the regulations which aim to bring about an increase in welfare by trying to ensure that competition in the marketplace is not restricted in ways that are harmful. The reason why we need to do careful analysis before recommending any regulatory intervention in the marketplace is that one business practice – such as retail price maintenance, exclusionary practices or mergers – may be beneficial or harmful to welfare depending on the exact nature of the context. Unwise and inappropriate intervention may make matters worse. No prior knowledge of our main analytic tool - game theory - is needed.

Topics covered

• Monopoly, market power, and welfare
• Collusion and horizontal agreements
• Vertical restraints and vertical mergers
• Predatory activities
• Monopolisation and other abusive practices