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Module 6:
Competition and Regulation in Network Industries
(16 a.h.1)

Prof. Nils-Henrik von der FEHR
Prof. Yassine LEFOUILI 

Outline of Course Contents

Lecture 1: Networks (Claude Crampes)
Main topics: network characteristics (lines and nodes, natural monopoly, essential infrastructure, neutrality), negative externalities (congestion, transit losses), smart grids (reliability, resilience)

Lecture 2: Network effects (Yassine Lefouili)
Main topics: club effects, indirect network externalities, social networks, monopoly pricing with network effects, competition with network effects

Lecture 3: Ex ante regulation (Claude Crampes)
Main topics: incentive contracts, price regulation, RIIO, regulation agency

Lecture 4: Competition policy and network effects: Digital antitrust cases (Yassine Lefouili)
Main topics: abuse of dominance (Microsoft, Google), mergers (AOL/Time Warner; MCI-Worldcom/Sprint, Facebook/WhatsApp)

Lecture 5: Regulating the ICT industry 1 (Yassine Lefouili)
Main topics: entry, one-way access pricing, ECPR, margin squeeze, two-way access pricing, universal service obligation

Lecture 6: Regulating the ICT industry 2 (Yassine Lefouili)
Main topics: digital regulation and investment, net neutrality, privacy regulation, data and competition policy

Lecture 7: Regulating the energy industry 1 (Claude Crampes)
Main topics: infrastructure management and development (transport and distribution, unbundling, concession, interconnection), competition (wholesale and retail markets)

Lecture 8: Regulating the energy industry 2 (Claude Crampes)
Main topics: environmental policies (carbon markets, renewables, energy savings), demand responsiveness (load shedding, energy poverty)

Main References

• Church J. and N. Gandal (1992), “Network effects, software provision, and standardization”, Journal of Industrial Economics, vol. 40, 85-103.
• Crampes C. and T.O. Léautier (2015), "Demand response in adjustment markets for electricity", Journal of Regulatory Economics, vol. 48, 169–193.
• Crémer, J., Rey, P. and J. Tirole (2000), “Connectivity in the commercial Internet”, Journal of Industrial Economics, vol. 48, pp. 433-472.
• Fudenberg, D. and J. Tirole (2000), “Pricing a network good to deter entry”, Journal of Industrial Economics, vol 48, 373-390
• European Commission (1999), "Liberalisation of network industries. Economic implications and main policy issues", European Economy, n°4
• Lopez, A. and P. Rey (2016), “Foreclosing competition through access charges and price discrimination”, Journal of Industrial Economics, vol. 64, 436-465
• Shy O. (2001) "The Economics of Network Industries", Cambridge University Press. Read mainly chapters 1-6.
• TSE debate: "The electricity industry at a crossroads. A series of analysis", by C. Crampes and T.O. Léautier

… and much more in the slide

Module 1
Module 2
Module 3
Module 4

Module 5   Module 6
Module 7
Module 8

a.h. = academic hour (50 minutes).
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