Course Details
Understanding Economics For Network Industries
Dates will be avalible shortly
Professional Development
Administration
Victoria University Professional and Executive Development
Level 2, Rutherford House, 23 Lambton Quay, Wellington City
More Than 1 Week
9:00am - 4.30pm
9:00am - 4.30pm
$0.00
Overview:
This course is specifically designed to provide an understanding of economics and economic principles for those working in network industries.
Network industries include:
* electricity
* natural gas
* transportation (airlines, trucking, railroads)
* communications (telecommunications, cable television, data and Internet services), among others.
These industries have seen rapid technological change and have (or will) experience significant changes in cost structures and competition. In some cases, governments established private or government-owned monopolies which are now being privatized while competition is being introduced.
This course begins with an overview of the analytical framework used in industrial organisations. This is followed by studying in greater depth a selection of microeconomic topics that are particularly useful in analysing network industries. These include:
* technology and cost
* price discrimination
* peak-load pricing
* predation
* bundling and tying
* vertical restraints.
These and other microeconomic tools will be applied to the study of electricity, natural gas, airlines and transportation and telecommunications. The focus will be on these industries in New Zealand, but international experience and comparisons will be incorporated to the extent that they are helpful for understanding the industries. For each industry there will be an examination of issues including, as applicable, privatisation, competition, technological change, cost structures, regulation, and public policy.
Who Should Attend:
This course is designed for individuals engaged in policy-making and regulation of network industries, and the management staff of network industry firms. It would also be of interest to those engaged in the financing of network industries. No prior knowledge of economics is required.
Course Objectives:
* Develop an understanding of the key economic principles underpinning the operation of network industries and their regulation Apply the economic principles to the regulation of specific network industries: electricity, gas, telecommunications, transportation (rail, road, airlines, shipping)
* Demonstrate the ability to apply the principles to the regulation of specific network industries in the New Zealand context
Course Outline:
* Introduction to Industrial Organisation
* Review of microeconomic topics
* Competition and market power
* Technology and costs
* Pricing issues
* Bundling, tying and vertical restraints
* Regulation and network industries
* Privatization and competition
* Electricity and natural gas
* Airlines and transportation
* Telecommunications
Course Format:
The teaching will by means of lectures, group discussions and analysis of case studies.
Participants will be divided into three groups (one for electricity and natural gas; one for airlines and other transportation; and one for telecommunications) in order to prepare a paper and present a discussion of the relevant issues for that industry in the New Zealand context. The presentation should include a description of the industry, the market structure (eg. privatised, competitive), an explanation of any regulation, and an analysis of any regulatory policy. Recommendations for future policy directions are also appropriate. While opinions are welcome and encouraged, they should be clearly identified as such and differentiated from the objective description or analysis.
Schedule:
Thursday, 7 April 2011 9:00am - 4:30pm Workshop
Friday, 8 April 2011 9:00am - 4:30pm Workshop
Thursday, 5 May 2011 9:00am - 4:30pm Workshop
Friday, 6 May 2011 9:00am - 4:30pm Workshop
This course is specifically designed to provide an understanding of economics and economic principles for those working in network industries.
Network industries include:
* electricity
* natural gas
* transportation (airlines, trucking, railroads)
* communications (telecommunications, cable television, data and Internet services), among others.
These industries have seen rapid technological change and have (or will) experience significant changes in cost structures and competition. In some cases, governments established private or government-owned monopolies which are now being privatized while competition is being introduced.
This course begins with an overview of the analytical framework used in industrial organisations. This is followed by studying in greater depth a selection of microeconomic topics that are particularly useful in analysing network industries. These include:
* technology and cost
* price discrimination
* peak-load pricing
* predation
* bundling and tying
* vertical restraints.
These and other microeconomic tools will be applied to the study of electricity, natural gas, airlines and transportation and telecommunications. The focus will be on these industries in New Zealand, but international experience and comparisons will be incorporated to the extent that they are helpful for understanding the industries. For each industry there will be an examination of issues including, as applicable, privatisation, competition, technological change, cost structures, regulation, and public policy.
Who Should Attend:
This course is designed for individuals engaged in policy-making and regulation of network industries, and the management staff of network industry firms. It would also be of interest to those engaged in the financing of network industries. No prior knowledge of economics is required.
Course Objectives:
* Develop an understanding of the key economic principles underpinning the operation of network industries and their regulation Apply the economic principles to the regulation of specific network industries: electricity, gas, telecommunications, transportation (rail, road, airlines, shipping)
* Demonstrate the ability to apply the principles to the regulation of specific network industries in the New Zealand context
Course Outline:
* Introduction to Industrial Organisation
* Review of microeconomic topics
* Competition and market power
* Technology and costs
* Pricing issues
* Bundling, tying and vertical restraints
* Regulation and network industries
* Privatization and competition
* Electricity and natural gas
* Airlines and transportation
* Telecommunications
Course Format:
The teaching will by means of lectures, group discussions and analysis of case studies.
Participants will be divided into three groups (one for electricity and natural gas; one for airlines and other transportation; and one for telecommunications) in order to prepare a paper and present a discussion of the relevant issues for that industry in the New Zealand context. The presentation should include a description of the industry, the market structure (eg. privatised, competitive), an explanation of any regulation, and an analysis of any regulatory policy. Recommendations for future policy directions are also appropriate. While opinions are welcome and encouraged, they should be clearly identified as such and differentiated from the objective description or analysis.
Schedule:
Thursday, 7 April 2011 9:00am - 4:30pm Workshop
Friday, 8 April 2011 9:00am - 4:30pm Workshop
Thursday, 5 May 2011 9:00am - 4:30pm Workshop
Friday, 6 May 2011 9:00am - 4:30pm Workshop
Professor Stanford Levin, Emeritus Professor, Southern Illinois University Edwardsville. Professor Levin has extensive experience as a researcher and teacher of regulatory economics, a consultant to network industries and is a former Utilities Regulator in the State of Illinois.
Professor Lewis Evans, Victoria University of Wellington; Distinguished research fellow, New Zealand Institute for the Study of Competition and Regulation. In addition to his long and distinguished career as an economist specializing in competition and regulation issues, with a specific emphasis on the New Zealand context, Professor Evans is a Lay member of the High Court of New Zealand, and has served on the Electricity Market Surveillance Panel and the Ministerial Taskforce on the Electricity Industry.
Bronwyn Howell, General Manager, New Zealand Institute for the Study of Competition and Regulation and Lecturer, Victoria Management School. Bronwyn Teaches Economics, Information Economy and Corporate Management for the Victoria University Masters of Business Administration programme, in addition to researching issues of telecommunications policy and regulation.
Professor Lewis Evans, Victoria University of Wellington; Distinguished research fellow, New Zealand Institute for the Study of Competition and Regulation. In addition to his long and distinguished career as an economist specializing in competition and regulation issues, with a specific emphasis on the New Zealand context, Professor Evans is a Lay member of the High Court of New Zealand, and has served on the Electricity Market Surveillance Panel and the Ministerial Taskforce on the Electricity Industry.
Bronwyn Howell, General Manager, New Zealand Institute for the Study of Competition and Regulation and Lecturer, Victoria Management School. Bronwyn Teaches Economics, Information Economy and Corporate Management for the Victoria University Masters of Business Administration programme, in addition to researching issues of telecommunications policy and regulation.