Ec 437 Public Utility Economics

Examines the rationale, economic principles, and institutions of historic economic regulation. Contemporary theory of the firm and microeconomic pricing are analyzed. Technological changes suggest that to achieve economic efficiency it may no longer be necessary or appropriate to subject energy and telecommunications firms to traditional utility regulation. There is academic enthusiasm for displacing economic regulation with competition. Deregulation and restructuring are explored with emphasis on contemporary issues in Oregon, the Pacific Northwest, and the nation. In particular, difficulties in transformation to the marketplace will be examined. Expert guest lecturers from the utility and regulatory communities will be scheduled, and contemporary scholarly literature will be reviewed. Also offered for graduate-level credit as Ec 537 and may be taken only once for credit. Recommended: Ec 201, 202.