Course title

Government Regulation of Business

Code

 ECN 410

Professor

Prof. Trajko Slaveski, Ph.D.

After completion of this course the students should be enabled to:

• Understand the functioning of the market and market structures;
• To understand the logic of state intervention through competition policy as a basis for normal functioning of the market. Using comparative analysis, with a special emphasis upon the EU policies in this field, a broader knowledge is acquired for the rules of behavior of enterprises in international business;
• The knowledge and skills acquired by studying this discipline are quite valuable to the students, regardless of their engagement in the private or the public sector. Private enterprises face the government measures for regulation certain market situations. In addition, enterprises may seek government assistance in prevention of certain unfair behavior of their competitors which undermines competition. Those students who might decide for a career in the public sector (public enterprises, bureaus and agencies for regulation of fostering of competition, other state or government bodies etc.) will be enabled to contribute, as economic analysts, in the improvement of functioning of the market mechanism.

This course covers the areas of industrial organization, competition policy, and regulation.

Industrial organization covers the plethora of economic factors that determine the market structure (number and size of companies), and their conduct (competitive strategies).

Industries where competition is feasible, but it has been hampered for various reasons (misuse of dominant position, vertical restraints of trade, collusion etc.) are subject to competition policies implemented by special government agencies.

Those industries where competition is absent, or impractical from the social point of view (for example, natural monopolies) are subject to regulation. In addition to economic approach, the political economy approach is also being used , whereby particular focus is concentrated upon certain phenomena in functioning of institutions and government agencies.