Index
Introduction
1. The market forces argument 4
2. Breakdown of the market forces argument in natural monopolies 6
3. Economic key issues which regulators of privatised industries should consider 8
4. References 12
Introduction
This essay covers some issues of privatisation and regulation. It is divided into three parts. Part one gives a brief outline of the author`s understanding of the market forces argument for privatisation. In the second part it is explained what is meant by a natural monopoly and why the market forces argument does not hold if an industry is a natural monopoly. The third part then discusses which economic key issues should be considered by the regulatory body of a privatised industry.
Privatisation is the transfer of public ownership away from the state to private ownership.
Regulation is a limitation on the behaviour of firms or organizations, imposed by the government.
From the view of competition it is the aim to remove market distortions which are caused by public enterprises and regulations (Case K. et al. 1999: 356.)
Table of Contents
- Introduction
- The market forces argument
- Breakdown of the market forces argument in natural monopolies
- Economic key issues which regulators of privatised industries should consider.
- References
Objectives and Key Themes
This essay aims to examine the concept of privatization and its associated regulation in a market context. It analyzes the rationale for privatization, particularly the market forces argument, and explores its limitations when applied to natural monopolies. The essay concludes by outlining key economic issues that regulators must consider when overseeing privatized industries.
- The market forces argument for privatization
- Limitations of the market forces argument in natural monopolies
- Economic issues for regulators of privatized industries
- Efficiency and welfare implications of privatization
- The role of competition in promoting economic efficiency
Chapter Summaries
- Introduction: This section provides an overview of the essay's scope and structure, defining privatization and regulation and highlighting their relevance in the context of competition.
- The market forces argument: This chapter elaborates on the economic arguments for privatization, emphasizing the potential for increased competition, lower prices, and improved efficiency through the introduction of private ownership and market forces.
- Breakdown of the market forces argument in natural monopolies: This chapter focuses on the limitations of the market forces argument in natural monopolies, highlighting the inherent inefficiency of monopolies and the need for regulation to ensure consumer welfare.
Keywords
Privatization, regulation, market forces, natural monopolies, economic efficiency, competition, welfare, public interest, regulatory issues, private ownership, public enterprises.
- Quote paper
- Markus Aßner (Author), 2004, Privatisation and Regulation, Munich, GRIN Verlag, https://www.grin.com/document/39105
