Both anti-trust policy and economic regulation deal with monopoly. What distinguishes the two approaches? How does the government decide to use one form of remedy rather than the other?
An anti-trust policy reflects the government's attempt to reduce anticompetitive behavior and promote a market structure that leads to greater competition and also attempts to promote socially desirable market performance.
Economic regulation tries to reduce the harmful consequences of monopolistic behavior in those markets where output can be most efficiently supplied by one or a few firms. Anti-trust policies tries to promote competition in those markets where competition seems desirable.
I guess I'm not correlating what the "distinguishing approach" or how the government decides to use one or the other?
Recently Asked Questions
- A survey found that 31% of all teens buy soda (pop) at least once each week. Seven teens are randomly selected. The random variable represents the number of
- A restaurant offers a $12 dinner special that has 6 choices for an appetizer, 11 choices for an entre, and 5 choices for a dessert. How many different meals
- What is a perfect market? Why methods and tools of statistics are so crucial in investment decision making? A tall Starbucks coffee costs $1.85 in 2017. If the