Economics Competition Policy
- Created by: joshward_4
- Created on: 24-11-15 10:07
View mindmap
- Economics Competition Policy
- Some markets have their own regulating bodies, particularly in monopolistic and oligopolistic markets
- These bodies have responsibilities such as to regulate prices, encourage competition and ensure product standards
- Examples of UK regulating bodies are: OFCOM - communication industry, OFWAT - water industry, OFSTED - education
- These bodies have responsibilities such as to regulate prices, encourage competition and ensure product standards
- There are several ways in which the government can intervene in a market in order to try and increase competition
- The government can sell a publicly owned firm to the private market so that it is opened up to competition and this will encourage other firms to compete which the new firm
- The government regulate markets and as a result it means that they can prevent firms from becoming monopolies
- Price caps are common in the UK utility markets
- Deregulation can also make a market more contestable and as a result it means that it's easier for new firms to enter the market.
- The Effectiveness of competition policy is greatly affected by the amount of information available to the EU commission and the CMA
- There is a cost though when the government have to intervene, usually those the benefits outweigh the costs
- Some markets have their own regulating bodies, particularly in monopolistic and oligopolistic markets
Comments
No comments have yet been made