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9 Cards in this Set

  • Front
  • Back

why is competition important

helps consumers- better quality and lower prices


-drives innovation and productivity


-increase in supply side


-economic growth


-reduces x inefficienes

role of the CMA

strengthen competition and reduce anti competitive practices


-investigate mergers and anti competitive practices


-conduct market studies

4 key points to EU competition policies

1-antitrust and cartels


2-merger control


3-market liberalisation


4-state aid control

7 examples of anti competitive practices

1-predatory pricing


2-exclusive dealing


3-territorial exclusivity


4-quantity discounts


5-refusal to supply


6-artifcial barriers to entry


7-collusive practices

5 points to consider if a merger should be allowed

1-market position of merged firm


2-strength of remaining competitors


3-customer buying power


4-potential competition


5-will it enhance/slow down innovation and levels of investment

what is privatisation

transfer of economic activity from public to private ownership. attempts to increase economic efficiency by reducing gov. role in markets

3 examples of privatisation

denationalisation


deregulation


contracting out

7 arguments for privatisation

1-more efficient, more productive and lower costs


2-eliminates x inefficiencies


3-better resource allocation


4-removes public sector monopolies- more comp. lower prices. more consumer choice.


5-increased share ownership


6-lower taxes


7-increased gov. spending

6 arguments against privatisation

1-natural monopolies


2-may create private monopolies


3-loss of gov revenues from profits


4-may lead to higher prices


5-may lead to lower service quality


6-may lead to job losses