Blyts-_
Badges: 15
Rep:
?
#1
Report Thread starter 6 years ago
#1
How can the government intervene in a market to promote competition, what polices could they use?
0
reply
gr8wizard10
Badges: 21
Rep:
?
#2
Report 6 years ago
#2
(Original post by Blyts-_)
How can the government intervene in a market to promote competition, what polices could they use?
Here are a few suggestions of the top of my head:

De-regulation (The removal of beauracratic/legal barriers to entry)
Increased systematic regulation (OFT&CC which oversea mergers and and takeovers) / De-construction of Monopolies
Legislation against strategic barriers to entry (such as Competition act of 1998)
Encourage entrepreneurship - Supply side policies / increase education & training in associated fields
Reduce patent expiry years (encourage perfect knowledge within markets)
Reduce corporation tax (encourages atomicity/ more firms being created potentially)
Privatise national industries! (being a neo-liberal, this is my own suggestion)
Legislation to prevent collusion (huge fines for firms operating together illegally)
0
reply
Blyts-_
Badges: 15
Rep:
?
#3
Report Thread starter 6 years ago
#3
(Original post by Abdul-Karim)
Here are a few suggestions of the top of my head:

De-regulation (The removal of beauracratic/legal barriers to entry)
Increased systematic regulation (OFT&CC which oversea mergers and and takeovers) / De-construction of Monopolies
Legislation against strategic barriers to entry (such as Competition act of 1998)
Encourage entrepreneurship - Supply side policies / increase education & training in associated fields
Reduce patent expiry years (encourage perfect knowledge within markets)
Reduce corporation tax (encourages atomicity/ more firms being created potentially)
Privatise national industries! (being a neo-liberal, this is my own suggestion)
Legislation to prevent collusion (huge fines for firms operating together illegally)
thanks, your knowledge on economics is great, you've been helping me out a lot mate, where do you get your notes from? what textbook do you use? also can you tell me some way the govt intervenes in the market for public and merit goods
how can government intervene in the market for public and merit goods?
0
reply
gr8wizard10
Badges: 21
Rep:
?
#4
Report 6 years ago
#4
(Original post by Blyts-_)
thanks, your knowledge on economics is great, you've been helping me out a lot mate, where do you get your notes from? what textbook do you use?
No problem, helps keep my mind active.
I don't really keep notes.. I just make sure I understand whatever has been taught and relay it to the real world. Although I do ocasionally use Youtube (Specifically PajHolden's channel) and Tutor2u to refresh anything I may not be confident with. I use the standard textbook that's been given, AQA Economics A2 - Nelson Thornes which I have yet to read

(Original post by Blyts-_)
also can you tell me some way the govt intervenes in the market for public and merit goods
how can government intervene in the market for public and merit goods?
Governments do intervene in such markets such. On the notice of Public good a prime example would be the direct provision of Street lights/roads/beaches, per say. Such goods would otherwise not be provided by the private sector as there's no profit incentive (As public goods are both non-rivalry and non-excludable, if I re-call correctly).

For merit goods the Government can also give Direct provision i.e NHS Service, Schools. The government can subsidise or offer incentives. For example, private hospitals could be given cash incentives to increase the number of hospital beds available to National Health Service (NHS) patients, and private schools could be given grants to take state school pupils. This would decrease price and increase quantity of merit goods leading society closer to its social optimum.

There is likely to be considerable information failure in terms of recognising the benefit to themselves, and to others, of regular health checks, eye tests, or visits to the dentist. Governments can provide information to tackle information failure through say.. advertising/encouragement of using services (such as regular dentist check-ups).
0
reply
Blyts-_
Badges: 15
Rep:
?
#5
Report Thread starter 6 years ago
#5
(Original post by Abdul-Karim)
No problem, helps keep my mind active.
I don't really keep notes.. I just make sure I understand whatever has been taught and relay it to the real world. Although I do ocasionally use Youtube (Specifically PajHolden's channel) and Tutor2u to refresh anything I may not be confident with. I use the standard textbook that's been given, AQA Economics A2 - Nelson Thornes which I have yet to read



Governments do intervene in such markets such. On the notice of Public good a prime example would be the direct provision of Street lights/roads/beaches, per say. Such goods would otherwise not be provided by the private sector as there's no profit incentive (As public goods are both non-rivalry and non-excludable, if I re-call correctly).

For merit goods the Government can also give Direct provision i.e NHS Service, Schools. The government can subsidise or offer incentives. For example, private hospitals could be given cash incentives to increase the number of hospital beds available to National Health Service (NHS) patients, and private schools could be given grants to take state school pupils. This would decrease price and increase quantity of merit goods leading society closer to its social optimum.

There is likely to be considerable information failure in terms of recognising the benefit to themselves, and to others, of regular health checks, eye tests, or visits to the dentist. Governments can provide information to tackle information failure through say.. advertising/encouragement of using services (such as regular dentist check-ups).
what policies could the UK government use to deal with problems associated with the supply and use of water
0
reply
gr8wizard10
Badges: 21
Rep:
?
#6
Report 6 years ago
#6
(Original post by Blyts-_)
what policies could the UK government use to deal with problems associated with the supply and use of water
Thames Whater is a natural monopoly. The government is likely to subsidise production to lead to the most efficient allocation of resources. They are likely to subsidise to the point where it's the most socially optimum usually nearer the MES.

The government could set minimum pricing laws which disallows firms to set prices over a set limit.

RPI-X could be implemented where the price is allowed to rise below a certain level of inflation to encourage innovation and productivity.

Governments could possibly reduce corporation tax for the company and incentivise them to inevst in research and development to lower costs (Process innovation/Dynamic efficiency).

Increased regulation (there's already Ofwat). Ensure there's no regulatory capture to make the firms act in the public interest.

Information provision which aims to promote using water ethically and consider the environmental impacts, possible?

I'm sure there are a few more policies applicable to that particular question. It's about taking the time to think of how the real world government would attempt to resolve such an issue. When getting a question in an exam try and put yourself in the mindset of the government/consumer/businesses etc.. and work around the question from different perspectives.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Have you experienced financial difficulties as a student due to Covid-19?

Yes, I have really struggled financially (17)
13.08%
I have experienced some financial difficulties (31)
23.85%
I haven't experienced any financial difficulties and things have stayed the same (58)
44.62%
I have had better financial opportunities as a result of the pandemic (20)
15.38%
I've had another experience (let us know in the thread!) (4)
3.08%

Watched Threads

View All
Latest
My Feed