Module 6
Module 6: Competition and Regulation in Network Industries
(12 a.h.¹)
Outline of Course Contents
Lecture 1: Networks (Christos Genakos)
Main topics: network effects, network industry characteristics, monopoly pricing with network effects, competition with network effects
Lecture 2: Network pricing (Richard Green)
Main topics: network cost allocation and recovery, two-part tariffs, peak load pricing, pricing in energy networks
Lecture 3: Regulation, incentive contracts, regulation in practice (Richard Green)
Main topics: what regulation is and isn’t, incentive mechanisms, price regulation in practice
Lecture 4: Competition policy and network effects: Digital antitrust cases (Christos Genakos)
Main topics: abuse of dominance (Microsoft, Google), mergers (AOL/Time Warner; MCI-Worldcom/Sprint, Facebook/WhatsApp)
Lecture 5: Regulating the ICT industry (Christos Genakos)
Main topics: entry, one-way access pricing, ECPR, margin squeeze, two-way access pricing, digital regulation and investment
Lecture 6: Regulating the energy industry (Richard Green)
Main topics: unbundling electricity (and gas), market power in electricity wholesale markets, competition in retail energy markets
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
¹ a.h. = academic hour (50 minutes)