Monopoly And Competition And Their Regulation

Natural monopolies exist in those markets in which demand can be satisfied at lowest cost by the output of only one rather than several competing firms. Under such conditions, conventional wisdom suggests that government regulation must substitute for competition to discipline the behavior of firms. Thirty years ago a young professor named Richard Posner asked the provocative question of whether the existence of natural monopoly provides adequate justification for government intervention. His even more provocative answer was no. The evils of natural monopoly are exaggerated, the effectiveness of regulation in controlling them is highly questionable, and regulation costs a great deal. "The resources and energies of government should be directed to problems we know are substantial, that we think are traceable to government action, and that cannot be left to the private sector to work out. There are plenty of those problems, and it is doubtful that natural monopoly is among them." Thirty years after its initial publication, read the original insights of Richard Posner about the regulation of natural monopoly as well as a new preface in which Posner reflects on the deregulation of industries that has occurred since 1969 and the possibilities for more deregulation in the future."

Competition may not function well where technology calls for large and complex investments, as in the electrivity industry where public utilities often provide service. This book presents economic welfare foundations for the purpose of evaluating how well, from a social point of view, an enterprise performs when competition is unable to function. Problems with existing institutions are emphasized. Topics treated include welfare measures and their uses in peak-load pricing, second-best pricing, and income distribution. Professor Sherman covers public choice difficulties of government intervention, and describes problems with incentives in statutory monopolies and efforts to overcome them through the study of principal-agent relationships. Contestability and sustainable prices are also discussed, as well as effects of uncertainty and imperfect information.

The Second Edition of Monopoly, Competition and the Law is a rigorous and detailed exposition of the objectives, nature and application of competition law in the United Kingdom, the EEC and the USA. Fully updated, it includes a full account of the many legal developments since 1989, including analyses of the new merger policy of the EEC and proposals for the radical reform of UK policy of restrictive trade practices. This work is the most recent of its kind, providing updated coverage of this dynamic area of law and policy which has become an everyday consideration in market strategy. Tim Frazer, a specialist in competition law and policy and a solicitor, surveys the vast and complex field of monopoly and competition policy in a style easily accessible to lawyers and non-lawyers alike. Every aspect of the law, in all three jurisdictions, is covered - the development of governmental and judicial policy on monopoly and competition; the objectives of competition policy and the legal control of business practices; monopoly and competition laws in the UK, the EEC and the USA, with an examination of the legal and economic problems involved. Lawyers, economists, political and social scientists will find this an informative reference source on a wide range of topics, including concepts of public policy, the nature and treatment of unfair and discriminatory practices, and the role of the government in the market place. An indispensable text for all students and practitioners of competition law and policy, this comprehensive survey is also highly relevant to industrial economics, commercial and business law, contract law and consumer protection.