Deregulation Flashcards
1
Q
Define deregulation
A
Removes of rules/laws/barriers to entry in order to create more competitive/contestable markets
2
Q
What are the benefits of deregulation
A
Drives competitive pressure —> EoS, efficiencies, lower costs & prices
Encourages non-price competition
3
Q
What are the problems of deregulation
A
Creates inefficient private sector monopolies and oligopolies
Barriers to entry may persist to due to incumbent firms achieving EoS
Regulators must be effective in cracking down on anti-competitive practices
