The Theory of Contestable Markets

Exam 1

1. Outline the different public and private theories of regulation and their theoretical predictions. Using relevant examples, explain which of the theories you think best fits with reality.

Don't use plagiarized sources. Get Your Custom Essay on
The Theory of Contestable Markets
Just from $13/Page
Order Essay

2. The theory of contestable markets seems to offer substantial benefits in terms of preventing abuse of monopoly power without the need for regulation or actual competition. Can these benefits be realised in practice? Your answer should draw on both theory and empirical examples.

 

3. Explain the role of competition for the market in bringing about desirable outcomes in markets where competition in the market is not desirable or possible. Can it work, and in what circumstances? Your answer should draw on both theory and empirical examples.

 

4. Can privatisation, combined with market opening and / or strong economic regulation, solve the problems associated with state ownership? Do you agree that state ownership is a problem in need of a solution or that more state ownership is now needed to solve the problems of private ownership? Your answer should draw on both theory and empirical examples.

5. How can economic regulation be used to ensure a “fair” balance between incentivising firms to improve efficiency and make a reasonable return, whilst also delivering a good deal for tax payers and consumers? Are some regulatory mechanisms more suited than others to achieving these objectives? Your answer should draw on both theory and empirical examples.

 

ORDER NOW »»

and taste our undisputed quality.