6 - competition policy and contestable markets Flashcards
the existing firms in the industry
incumbents
where there is free entry and free exit of other firms
contestable market
methods that the UK government and EU authorities use in order to make markets more efficient
competition policy
methods used by firms to reduce competition in a market
restrictive trade practices
a government organisation responsible for implementing policy in relation to monopolies
competition commission
where a firm, or group of firms working together have a market share of 40%
dominant market position
a government organisation responsible for implementing aspects of competition policy
office of fair trading
a term used to cover the public’s right not to be exploited by firms abusing monopoly power
public interest
state control of firms
nationalisation
sales of government owned assets to the private sector
privatisation
the process of removing government controls from markets
deregulation
a firm that can theoretically gain continuous economies of scale and where it is thus uneconomic for more than one firm to supply the market
natural monopoly
a way of life that emphasises the importance of individuals who create their own businesses and create wealth
enterprise culture
partnerships between the private and public sectors to provide public services
public-private partnerships (PPPs)
a form of public-private partnership in which private sector firms undertake the bulk of the work
private finance initiative (PFI)
