LAW5396 - Economics of regulation - 2018

This unit will consider economic concepts relevant to understanding the regulation of markets. Micro-economic theory will be used to highlight the impact of market failures, including market power, information imperfections, externalities and public goods. Practical tools for evaluating regulation, including the structure, conduct and performance framework and cost-benefit analysis will also be covered.

The unit will examine structure and pricing regulation, the regulation of information provision and the use of market instruments in regulation affecting the environment. It will consider both economic and social regulation, including that relating to the fairness of market transactions. The economic basis for regulatory reform initiatives will also be considered.

Practical applications of the economic concepts presented will be considered through out the course with the use of specific industry and regulatory case examples.

1. Apply knowledge and understanding the economic rationales for regulation and for the use of economic instruments of regulation with creativity and initiative to new situations in professional practice;
2. Investigate, analyse and synthesise complex information, problems, concepts and theories in relation to the effectiveness and efficiency of regulation;
3. Conduct research into the ways in which the performance of regulation can be improved based on knowledge of appropriate research principle and methods; and
4. Use cognitive, technical and creative skills to generate and evaluate at an abstract level complex ideas and concepts relevant to the economics of regulation.

Research assignment (3,750 words): 50%

Take-home examination (3,750 words): 50%

24 contact hours per semester (either intensive, semi-intensive or semester long, depending on the Faculty resources, timetabling and requirements). Students will be expected to do reading set for class, and to undertake additional research and reading applicable to a 6 credit point unit.