OVERVIEW

The teaching unit introduces the basic principles of market regulation, from market failures to
the main approaches to the regulation of prices, quality, and investment, with particular
attention to energy markets and to the role of institutions in the design and implementation of
regulation.

AIMS AND CONTENT

LEARNING OUTCOMES

The teaching unit provides students with the conceptual and analytical tools needed to
understand the rationales, principles, and main instruments of economic market regulation,
with particular attention to the energy sectors. By the end of the teaching unit, students will
have acquired the foundations required to interpret different regulatory frameworks, assess
the economic implications of major regulatory choices, and place these issues within
thebroader educational pathway in applied economics and market policy.

AIMS AND LEARNING OUTCOMES

By the end of the teaching unit, students will be able to:
1. identify the main economic rationales for market regulation with reference to regulated
cases and sectors;
2. distinguish the main instruments for regulating prices, quality, and investment in different
market settings, with particular reference to energy markets;
3. analyse the economic and institutional features of network industries in order to select the
most appropriate regulatory framework;
4. assess the effects of different regulatory approaches on firms’ behaviour and market
outcomes on the basis of the models and cases discussed in class;
5. apply the fundamental concepts of economic regulation to the interpretation of concrete
issues in the gas and electricity sectors.

PREREQUISITES

Basic knowledge of undergraduate microeconomics.

TEACHING METHODS

Lectures and seminars of field experts. attendance is not compulsory

Students with certified disabilities, specific learning disorders, or other special educational
needs are invited to contact the instructor at the beginning of the teaching unit in order to
agree, in compliance with the learning objectives, on any necessary accommodations and
compensatory tools. For further information, students may also contact Professor Elena
Lagomarsino, the Department contact person, at elena.lagomarsino@unige.it.

SYLLABUS/CONTENT

Chapter 1: Introduction to Regulation

Chapter 2: Why Regulate 

The chapter examines why certain industries are subject to economic regulation, and considers: Why should we regulate certain industries and activities? ,Why do we regulate certain industries and activities? 

Chapter 3: Is Economic Regulation Inevitable? What are some alternatives?  

The chapter considers alternatives to the standard approaches to economic regulation, including: franchising or ‘competition for the market’, state ownership, negotiated agreements, a reliance on ex post competition law, ‘deregulatory’ policies.

Chapter 4: Principles of regulation for monopoly (core network) activities.

The chapter describes general principles for regulating the core network activities of public utility industries (e.g.: the pipes, wires and rails).

Chapter 5: Price Regulation

The chapeter examines different forms of price regulation, including: rate of return regulation, price cap regulation and other alternative approaches. 

RECOMMENDED READING/BIBLIOGRAPHY

Modern Economic Regulation

An Introduction to Theory and Practice

Christopher Decker

University of Oxford

last edition

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

second semester 14 september 2026

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

Group work to be completed at home and presented to the class.

ASSESSMENT METHODS

The project will be evaluated based on the accuracy of its content, clarity of presentation, use of terminology, and analytical and practical application skills.

FURTHER INFORMATION

Please contact the instructor for any further information not included in the teaching unit
description.