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Essay

Regulation Of Monopoly

Essay specific features

 

Issue:

Business

 

Written by:

Donald N

 

Date added:

December 18, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 996

 

Was viewed:

8786 times

 

Rating of current essay:

 
Essay content:

Nonetheless, there is considerable evidence that much regulation fits the private-interest hypothesis more closely than the public-interest hypothesis. The private-interest theory of regulation suggests that much regulation will create economic inefficiency. A considerable amount of regulation involves industries that have a substantial amount of competition (such as agriculture, transportation, and oil and gas production), and both the theoretical and empirical evidence suggest that this regulation will lead to higher prices and lower quantities, which is economically inefficient...
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The adverse effects of regulation can be partially offset by competition in service if competition is not allowed in price. Thus, airlines, which could compete only to a limited extent on price during the years in which they were tightly regulated, could and did compete on the quality and quantity of service...
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