Regulators exert a pervasive influence over virtually all aspects industrial activity. Even where policymakers have sought to rely more on market forces, regulatory oversight is still present and plays a key role in determining market outcomes. This course will introduce major theories as well as cases on the role of regulation in modern economies. Examples will be drawn mainly from electricity, telecommunications, natural gas, water, postal delivery, and food and drugs. The course will provide a comprehensive introduction to regulatory oversight of these industries in the U.S. and will address common themes and challenges, such as how regulators contend with their often limited ability to obtain accurate information and the effects of regulatory oversight on both short-term and long-term firm behavior. We will examine procedures for public engagement in regulatory decision-making (monitoring, participating, challenging on review), and the relationship between regulators and political authorities. Some attention will be given to comparisons of US regulatory processs with those in both industrialized and developing countries.
This course is cross-listed with the Economics Department (Same as ECON 158).