EGT1 Task3

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

B) The intended purpose of Industrial or Economic regulation as applied to Oligopolies and Monopolistic market structures is used to reduce the market power of both! A government commission regulates the prices charged by “natural monopolists.” Industrial Regulation is necessary to prevent natural monopolies from charging monopoly rates which may harm consumers/ society. Industrial Regulation tries to establish pricing that will cover production costs and provide a fair amount of return to businesses. Price=Average Total Cost, where normal profit is accomplished. (governs pricing, output, & profits in specific industries).

For example, we could calculate the IQ difference for each subject by subtracting their IQ while taking a placebo from their IQ while taking the new drug. If our sample average was positive, it would mean that, on average, our subjects had a higher IQ while they were taking the experimental drug than they had while taking the placebo.

Through the social security system, Koreans have access to healthcare services. The South Korean social security system uses four insurance schemes to provide public assistance and social welfare services, all of which are compulsory. These social insurance schemes protect and secure people's income, health and employment. Foreigners who live and work in the country can subscribe and contribute to all four and receive the same benefits as Korean nationals. This cover is also extended to their dependents.Every resident in the country is eligible regardless of nationality or profession. Foreigners living in South Korea who are registered with the National Health Insurance Corporation receive the same medical benefits and services as Korean nationals. High quality healthcare is available in South Korea in general hospitals, oriental hospitals (which use traditional eastern medical practices), public health centers and private hospitals. There is a three tier provision

There have been positive attributes from the regulations. One of the positive effects on businesses is that enhanced environmental security has allowed for more investors to start trade in the regions with effective regulatory measures. This is because increased regulatory measures have resulted in the investors gaining not only positive returns, but also consumer trust due to their compliance (Lieberman, 2010). Therefore, there has been significant growth in investment; however, the negative influences have managed to cover these positive influences. The government has also managed to generate substantial amounts of money from the charges and used them in establishing a friendly environment for other potential investors.

The government can without much of a stretch right the harm done by coercive monopolies by basically uprooting government favors and boundaries

For example high-tech inventions that produce pollution needs to be controlled so it won’t weaken the environment. According to Jonathan B. Wiener’s, Regulations of Technology, and the Technology of Regulation, “Regulations is a set of techniques for changing production functions to produce fewer of some outputs such as pollution or more of others.” For most people they think the government is right for setting these types of rules so harm wouldn’t continue. “The influence of regulation on technology is complex and depends on the technology of regulation and the design and instrument choice of regulatory

This essay will argue that private voluntary regulation is not an effective substitute for national and multilateral regulations. Although it has advantages, it requires certain situations to ensure that the regulations are effective; it also poses a lot of disadvantages. Concluding private voluntary regulation should maybe be seen as complementing national and multilateral regulations instead of substituting to maximize effectiveness.

People have been doing anything in their power to gain money. Many think they are leading the competition with doing nothing wrong. Others see it as unfair to do the things that monopolies have done to society. Lawsuits have been made to stop the ones behind this, but some monopolies weren’t always out to hurt the economy, but to help it. Monopolies have impacted this economy in the past and even to this day.

Finally, in non-competitive markets, industrial policy intervenes to reach equilibria that the market would not otherwise be able to obtain. There are cases in which the existence of a monopoly is justified by efficiency. Sometimes natural monopolies are justified by some structural conditions that guarantee the efficiency of the market only if a single producer meets all the demand. There are also situations in which the natural monopoly is justified by the lack of a particular factor of production.

Although it takes huge investment to keep up with using high technology in producing the goods and services, it is at the firms’ benefit to do so because using such technology helps the firms to meet the customer satisfaction to high extend. Using high technology would also help the company to reduce the cost of their manufacturing goods in the long run so that they can offer the products and services to the customers for lower prices. Consequently, they can compete globally. However, in a monopolistic market, this cannot be seen obviously, and the firms would rather use the old Technics because those Technics do not need to additional investment, such as replacing them with new tools or high technology. For example, in Kurdistan, the monopolistic firms, such as electricity-companies are still using the traditional ways to generate power. The disadvantages of using such ways are costly and not sufficient amount to fulfill the ultimate customer needs. According to Ekrd Daily, “Nechirvan Barzani, announced that $3 billion is spent each year on electricity in the region.” This is a huge amount of money that the government spends for electricity. The prime minister of KRG also admits that there is electricity shortage. In fact, KRG could have promoted private sector to generate electricity in a perfect market competition, which could lead to less cost of it and sufficient electricity. Therefore, monopoly in the market would most probably be a big parasite to the economy of the

For instance, the huge registration price tag on mobile companies was a barrier that prevented new entrants into the industry. Obviously, several of these regulations were politically motivated to ensure that existing firms monopolize the industry. Interestingly, the majority of shareholders in these firms were politicians and top echelon in the government so little wonder why regulations were strictly enforced. Similarly, the government regulation did not in any form facilitate the buyer power rather kept the buyer power in a weak position. Presently, the buyer power is still weak and the market, to a large extent, dictates what the buyer wants. However, the supplier power is strong because, without the supplier, products and services will not effectively introduce into the market. There is little or no regulation on the supplier in my country. Post monopoly, restrictions on substitutes was removed and the ease for customers to switch from one firm to another became relatively quick and acceptable. Finally, the regulation on rivalry was removed when it was explicit that rivalries would ensure that firms remain relevant in the

Regulation is a means to achieve to certain goals or objectives, and we assume that these goals or objectives are coming from the public interest rather than from regulators own interest.

According to Den Hertog (2010), there are two wide traditions in relation to the concept of regulation. There is an assumption by the first tradition that the regulator has adequate information, as well as the implementation power authorities to efficiently promote the interest of the public. In addition, there is an assumption by the tradition that the regulators are compassionate and have an interest of pursuing the interest of the public. The regulatory concepts that advance from these suppositions are thus frequently referred as the “public interest concepts of regulation”. Den Hertog (2010) further argues that another tradition regarding the economic investigation of regulation proceeds from diverse suppositions. Regulator doesn’t have adequate information in regard to the demand, the cost, quality, as well as other scopes of the organization behavior. They can thus only impeccably enhance the interest of the public when controlling the

✓ The three theories proposed to understand the process of regulation – public interest, regulatory capture and private-interest theory