| Course Unit Code | Course Unit Title | Number of ECTS Credits Allocated |
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| 114-0508/01 | Antitrust Regulation and Competition Policy in the CR and the EU | 5 ECTS credits |
| Type of Course Unit | Choice-compulsory |
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| Level of Course Unit | First Cycle |
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| Year of Study | First Year |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | English |
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| Prerequisites and Co-Requisites | There are no prerequisites or co-requisites for this course unit |
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| Name of Lecturer(s) | Personal ID | Name |
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| JAN77 | Ing. Ivana Jánošíková, Ph.D. |
| Learning Outcomes of the Course Unit |
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The aim of this course is:
- to understand the role of regulatory policy in transition economies,
- to describe problems of deregulation and privatization
- to explain the purpose of regulation in public utility according to an analysis of the natural monopoly concept,
- to discusse general institutional issues of regulatory process and the possibility of application the EU regulatory practices in conditions of the Czech Republic. |
| Recommended Optional Programme Components |
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| Common optional components are not offered, students of special interest can participate in departmental activities or can arrange consulting hours with lecturer. |
| Course Contents |
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1. Introduction to Antitrust regulation
- The rationale for regulation and antitrust policies
- Economic regulation
- Criteria for assessment
2. Economic efficiency
- Competition – model of the perfect competition
- Concepts of economic competition
o free competition (A. Smith)
o workable competition (J. B. Clark)
o Freiburg school (Eucken, Boehm)
o optimal intensity competition (Katzenbach)
o neoclassic free competition (Hayek)
o Chicago school
o Harvard school
o Austrian school (Rothbard)
- Pure monopoly and its inefficiency
- Technical progress
3. Restriction of the economic competition
- Definition of the relevant market (product, time, geographic)
- Mergers
o horizontal
o vertical
o franchising
o investment cartels
o recession cartels
- Vertical restraints - abusing of the dominant position
o exclusive dealing
o tying
o manufacturer-retailer restraints
4. Monopolization and price discrimination
- Growth of the firm
o internal (positive for the competition)
o external growth – horizontal, vertical, conglomerate (mergers, acquisitions, concerns, joint-ventures, personal union, ...)
- Enlargement of the market concentration – measuring of the monopoly power
o concentration ratio
o Herfindahl-Hirschman index HHI
o Lerner index
- Price discrimination
- Predatory pricing
5. Natural monopoly
- Definition
- Economies of scale
- Cost subadditivity
- Sustainability
6. Economic regulation
- Brief history of economic regulation
- Instruments of regulation (control of price, quantity, entry and exit)
- The theory of regulation
o Capture theory
o Economic theory of regulation
o Testing theories of regulation
7. Natural monopoly regulation and electric power
- Rate-of-return regulation (ROR) – potentional failures (asymetric information, stability and anticipation, existence of the independent governor, motivation failures, risk transfer from the investor to the consumer, inverse relation between price and investment, Averch – Johnson effect, cross subsidy, ...)
- Incentive regulation (performance standards, earning sharings, price cap, yardstick regulation)
- Rate structure (FDC pricing, undue discrimination)
- Peak-load pricing
8. Different approaches to the regulation
- Conversion to the state ownership
- Exclusive contracts with the government (public tenders)
- Laissez-faire (price differentiation barrier model)
- Merger control
9. Contemporary approaches to the antitrust regulation
- Per se rule (USA)
- Rule of reason (EU)
10. Competition policy in the Czech republic - legislation
- Act on the Protection of Competition
- Block exemptions
- Leniency program
- Act on Public Procurement
- Act on State Aid
11. Czech competition policy - Application in the area of antitrust and mergers
- restrictive agreements - important cases
- abuse of dominant position - important cases
- concentration of undertakings - important cases
- statistics of antitrust and mergers
12. Czech competition policy - Application in the area of Public procurement and State aid
- statistics of public procurement
- statistics of state aid
- important cases
13. International co-operation
- the OECD Global Forum on Competition, the OECD Competition Committee
- the International Competition Network (ICN)
- the European Competition Network (ECN)
- the European Competition Authorities´ Network (ECA)
- the Central Europe Competition Initiative (CECI)
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| Recommended or Required Reading |
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| Required Reading: |
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1. Armentano, D. T.: Antitrust policy. Cato Institute, Washington D.C., 1986. ISBN 0-932790-58-5
2. Foster, C. D.: Privatization, Public Ownership and the Regulation of Natural Monopoly. Blackwell Publishers, Oxford 1992. ISBN 0-631-18486-4
3. Frazer, T: Monopoly, Competition an the Law. Harvester Wheatsheaf. New York, London etc. 1992. ISBN 0-7450-0727-9
4. Kahn, A. E.: The Economics of Regulation: Principles and Institutions. Wiley, New York, 1971. ISBN 0-262-11129-2
5. Kip Viscusi, W., Harrington J.E., Vernon J.M.: Economics of Regulation and Antitrust, 4th ed. MIT press. 2005. ISBN-10: 0-262-22075-X, ISBN-13: 978-0-262-22075-0
6. Rothbard, M. N.: Power and Market. Second edition. Institute for Human Studies, Inc. ISBN 0-8362-0750-5
7. Rowley, Ch. K.: Antitrust and Economic Efficiency. Macmillan Press Ltd. London 1973. ISBN 333 12215 1
8. Sharkey, W. W.: The Theory of Natural Monopoly. Press Syndicate of the University of Cambridge. Cambridge etc. 1982. ISBN 0-521-24394-7
9. Waterson, M.: Regulation of the Firm and Natural Monopoly. Basil Blackwell Ltd, Oxford 1988. ISBN 0-631-14007-7
10. Williamson, O. E.: Antitrust Economics. Basil Blackwell Ltd, Oxford 1987. ISBN 0-631-15363-2
11. http://www.compet.cz/
12. http://europa.eu.int/pol/comp
|
1. Armentano, D. T.: Antitrust policy. Cato Institute, Washington D.C., 1986. ISBN 0-932790-58-5
2. Foster, C. D.: Privatization, Public Ownership and the Regulation of Natural Monopoly. Blackwell Publishers, Oxford 1992. ISBN 0-631-18486-4
3. Frazer, T: Monopoly, Competition an the Law. Harvester Wheatsheaf. New York, London etc. 1992. ISBN 0-7450-0727-9
4. Kahn, A. E.: The Economics of Regulation: Principles and Institutions. Wiley, New York, 1971. ISBN 0-262-11129-2
5. Kip Viscusi, W., Harrington J.E., Vernon J.M.: Economics of Regulation and Antitrust, 4th ed. MIT press. 2005. ISBN-10: 0-262-22075-X, ISBN-13: 978-0-262-22075-0
6. Rothbard, M. N.: Power and Market. Second edition. Institute for Human Studies, Inc. ISBN 0-8362-0750-5
7. Rowley, Ch. K.: Antitrust and Economic Efficiency. Macmillan Press Ltd. London 1973. ISBN 333 12215 1
8. Sharkey, W. W.: The Theory of Natural Monopoly. Press Syndicate of the University of Cambridge. Cambridge etc. 1982. ISBN 0-521-24394-7
9. Waterson, M.: Regulation of the Firm and Natural Monopoly. Basil Blackwell Ltd, Oxford 1988. ISBN 0-631-14007-7
10. Williamson, O. E.: Antitrust Economics. Basil Blackwell Ltd, Oxford 1987. ISBN 0-631-15363-2
11. http://www.compet.cz/
12. http://europa.eu.int/pol/comp
|
| Recommended Reading: |
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| .............................. |
| ........................... |
| Planned learning activities and teaching methods |
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| Lectures, Individual consultations, Project work |
| Assesment methods and criteria |
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| Tasks are not Defined |
| Work placement(s) |
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| Course does not contain work placement. |
