FOR/AGAINST PRIVATISATION

HideShow resource information
  • Created by: Lottie
  • Created on: 20-01-13 16:26
Preview of FOR/AGAINST PRIVATISATION

First 100 words of the document:

Arguments for privatisation
pressure from shareholders to be more efficient
More motivated and have a greater emphasis on customer
service.
cross subsidisation can be eliminated
Subsidies should be reduced from industries that previously
were subsidies.
incentive for greater private sector investment
Arguments against privatisation
Natural monopoly argument ­. Made sense to have a single
provider to be able to exploit economies of scale fully
Large external benefits may not be taken into account by private
sector providers when taking decisions.
The net welfare effect is uncertain:

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all resources »