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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



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