Understanding industrial economics (economy of scale and scope; agglomeration economy and local production arrangements; vertical and horizontal integration; agency theory and transaction costs); regulation and urban economy; economic regulation of infrastructure: market failures, natural monopolies and economic theories of regulation; public service provision regimes and contractual designs; regulatory regimes; ramsey price; regulation with limited information; regulation by rate of return and regulation by incentives; adjustment by comparison (yardstick competition); responsive regulation; ordinary and extraordinary review; X factor; price-cap and revenue-cap; efficiency analysis methods; instruments for regulating service quality; mechanisms for contractual rebalancing; good practices for risk matrix; demand risk; regulatory risk; environmental risk; exchange rate risk; treatment for ancillary revenues; regulation, deregulation, contestability and competition; discretionary regulation and contractual regulation; discretion and flexibility versus stability and rigidity; risks and costs of contractual termination.
