Welcome

The Certificate in Regulation, jointly taught by the Faculty of Law and Engineering at the Universidad Adolfo Ibáñez, offers a multidisciplinary approach that integrates economics, law, technology, business and politics. This innovative approach provides students with a unique opportunity to specialize in the most dynamic areas and those with the greatest job opportunities in the arena of public policy and in the world of business: economic regulation. The program also allows students to specialize in different sectors, such as, electricity, telecommunications, health services, public works concessions and transportation.

Objectives

  • Learn about and identify market structures and understand how they work.
  • Identifying market failures that justify the implementation of a regulatory scheme.
  • Learn about various regulatory schemes, their advantages and disadvantages.
  • Understand regulations as well as economic and technical peculiarities of different industries subject to regulation.
  • Participate in a tariff process, either from the perspective of the regulator, the regulated company or its advisers.

Curriculum

The curriculum of the Certificate in Economic Regulation is structured around topics such as shown in the following figure:

Remedial courses

Remedial courses will be offered for students who require them as determined by the admissions committee. Remedial courses include:

  • Basic Mathematics and Statistics
  • Microeconomics
  • Introduction to Law

Theoretical Foundations

  • Regulation Theory: In this course the various tools the State has at its disposal are discussed, as well as restrictions it faces when intervening in a market with conditions that prevent competition from developing properly, including the case of natural monopolies. Special emphasis is placed on the regulatory mechanisms that the regulator can make use of when he does not possess all the information that the regulated company does. In this context, the role of incentives, regulation by cost of service, by price cap and the efficient business model is reviewed.

Theoretical Foundations

  • Regulation Theory: In this course the various tools the State has at its disposal are discussed, as well as restrictions it faces when intervening in a market with conditions that prevent competition from developing properly, including the case of natural monopolies.Special emphasis is placed on the regulatory mechanisms that the regulator can make use of when he does not possess all the information that the regulated company does. In this context, the role of incentives, regulation by cost of service, by price cap and the efficient business model is reviewed.
  • Economy Policy and Regulation: The goal of this course is to introduce students to the main aspects of the political and economic thinking of classical economists in order to illuminate several aspects of regulation. Special emphasis will be given to issues related to political institutions and ideas in the thinking of these great authors. The course concludes with a review of the theories of Hayek, Stigler, Posner and Becke, which analyze how and why regulations favor certain interest groups and these be considered efficient from the point of view of social welfare.
  • Regulatory Law: Market regulation is more of an economic concept than a legal one. It intervenes in any number of heterogeneous economic activities, but which are all strongly characterized by demands for quality and continuity, which the State looks after. The aim of this course involves the challenge of inducing, from various regulated disciplines or principles of public law, a common system aimed at rationalizing the exercise of regulatory powers and understanding the legal position of companies subject to regulation.
  • Competition and Regulation: This course addresses advanced topics in industrial organization related to the analysis of competition and regulation. At the beginning of the course, elements of game theory will be studied. Game theory is a tool that will subsequently be used to discuss specific topics such as the design of contracts and tenders, managing uncertainty, asymmetric information, property search, mergers and acquisitions, among others.

Practical Courses

  • Regulation Theory: In this course the various tools that the State has at its disposal are addressed, as well as restrictions the State faces when intervening in a market with conditions that prevent competition from developing properly, including the case of natural monopolies. Special emphasis is placed on the regulatory mechanisms that the regulator can make use of when he/she does not possess all the information that the regulated company does. In this context, the role of incentives, regulation by cost of service, by price cap and the efficient business model are reviewed.
  • Regulatory Law: Market regulation is more of an economic concept than a legal one. It intervenes in any number of heterogeneous economic activities, but which are all strongly characterized by demands for quality and continuity, which the State looks after. The aim of this course involves the challenge of inducing, from various regulated disciplines or principles of public law, a common system aimed at rationalizing the exercise of regulatory powers and understanding the legal position of companies subject to regulation.
  • Economy Policy and Regulation: The goal of this course is to introduce students to the main aspects of the political and economic thinking of classical economists in order to illuminate several aspects of regulation. Special emphasis will be given to issues related to political institutions and ideas in the thinking of these great authors. The course concludes with a review of the theories of Hayek, Stigler, Posner and Becke, which analyze how and why regulations favor certain interest groups and wherein these are considered efficient from the point of view of social welfare.
  • Competition and Regulation: This course addresses advanced topics in industrial organization related to the analysis of competition and regulation. At the beginning of the course, elements of game theory will be studied. Game theory is a tool that will subsequently be used to discuss specific topics such as the design of contracts and tenders, managing uncertainty, asymmetric information, property search, mergers and acquisitions, among others.
  • Pricing Models: In this course students will learn the main concepts and models used in business regulation in practice. Accounting and financial concepts involving the analysis and interpretation of financial statements, the determination of operating costs and capital depreciation, among others, will be reviewed. In addition, asset valuation methodologies, operational efficiency measures and the use of different benchmarks within the framework of regulation will be reviewed. Moreover, various techniques used in the estimation of the potential demand and elasticity of various industries will be discussed. After finishing the course, students will understand how various methods of rate calculation work in practice, and be able to critically evaluate quantitative work.
  • Institutional and Legal aspects of Regulation: Economic regulation requires an institutional framework to determine procedures, appeal mechanisms, and checks and balances between different public and private actors. This course reviews institutional design options, dispute resolution mechanisms and procedural aspects of regulation. In addition, cross-cutting regulatory issues pertaining to virtually all regulated sectors are addressed. We refer to environmental aspects and the regulation of capital markets, in which most regulated companies are normally involved.
  • Industry Regulation I and II: The main objective of this course is to enable participants to understand the specificities of each sector and their implications in terms of competition and regulatory challenges. During the course, different regulatory models that apply to each sector, the challenges posed by modernization and the probable development of regulation in the sector in question will be reviewed. At the end of the course, students are expected to have a good understanding of the practical application of economic theory in industries such as:

 Telecommunications; Electricity; Health services; Public works concessions; Port concessions; Transportation; Capital markets; Environment; Fisheries resources; Social security and health; Water resources.