Mandatory course »Regulatory Policy«

Course with weekly lectures (90 min.) and integrated exercises (90 min.) as lecture substitutes.

The course on »Regulatory Policy« deals with various kinds of market failure and with possibilities to reduce or eliminate them.

In the first part of the course the general principles of Regulatory Policy according to the so-called „Freiburg School of Regulatory Policy” are explained. Based on these principles the main sources of market failure like extenalities, public goods, monopolistic competition, asymmetric information etc. are discussed. Then suitable policy instruments for the reduction or even elimination of the different kinds of market failure are explained on the basis of neoclassical allocation theory.