Most European countries have already started, or are planning, privatisation's of public owned firms. However, little research has been carried out to help companies formulate strategy in these new markets. At the same time, few tools has been developed, with the exception of economics, to help the regulatory authorities evaluate the transition to a competitive market and the long-term performance of regulatory frameworks. The aim of this proposal is to develop a framework that can be used both by newly privatised companies and regulatory authorities to help understand newly engineered markets. The framework, which builds on industry simulation, will try to link insights from economics, organisational theory and strategy. This will provide a behavioural theory which can be used to understand the evolution of newly engineered markets.