Economic Regulation of Networked Industries

Catalog description

Economic Regulation of Networked Industries; This course will examine principles of economic regulation of networked industries such as gas, electricity, water and telecommunications, including economic justifications for price regulation (e.g. natural monopoly); alternative approaches to price regulation (Rate of Return, Price Caps), cost allocation and pricing in multiproduct industries (e.g. Ramsey prices); tariff design (single and multipart tariffs, capacity charges, peak load pricing); regulation in the presence of competition (cross subsidy and predatory pricing; access pricing); and institutional issues in regulatory agencies (design of independent regulatory agencies, incorporation of public input, public choice theory, regulatory capture). Prerequisite: 73-102