This course uses theoretical industrial organisation models as tools and analyse its application on competition policy and regulation. Our starting point would be the introduction of market definition and market power. We then consider the exercise of market power in a number of settings, such as through collusion, merger, vertical control, predation, and some non-price monopolization practices. Treatments of various potentially anti-competitive conducts in various guidelines, including the ACCC merger guideline and Trade Practices Act 1974, will be discussed.

In the last part of the course, we review the theory of economic regulation. The materials covered include the basic theory of regulation and its application in network industries.

This is the last course in the applied micro econonomics sequence. For students considering taking this course as well as Industrial Organisation, the suggested sequence would be taking IO first.

Upon successful completion of the course, students will:
- understand the main economic theories that form the foundation of competitive policies;
- be able to create simple models that evaluate policy interventions in markets;
- have the capacity to criticique decisions by courts and regulatory agencies regarding anticompetitive claims;
- be able to comment on the welfare implications of various conducts of the firms in several different market environments;

The assessment will be based on a mid term test and a final exam and assignments.

Two lectures per week and one tutorial per week

Completion of or concurrent enrolment in ECON3057/ECON3157 Industrial Organisation (P/H) or ECON3101 Microeconomics 3.

ECON2101 Microeconomics 2, if entering with Industrial Organisation requisite; ECON3057/ECON3157 Industrial Organisation (P/H) if entering with Microeconomics 3 requisite.

Please refer to Course Website