ID: 17167
Authors:
Leonardo Fernando Cruz Basso, Marcelo Roque da Silva.
Source:
Revista de Administração Contemporânea, v. 4, n. 2, p. 67-85, May-August, 2000. 19 page(s).
Keyword:
competition , deregulation , monopoly
Document type: Article (Portuguese)
Show Abstract
The goal of
this work was to present the three theories that defend the monopoly and
oligopoly deregulation: Demsetz critic, theory of contestable markets
and theory of capture. This was achieved using bibliographic and
Internet research. We support the debate concerning this economical
aspect, in Brazil and other countries, alerting about problems, costs
and difficulties related to the regulation and also studying some
industrial cases where the deregulation has already taken place. We
concluded that much reflection is necessary when dealing with industrial
regulation since there are less damaging options from the point of view
of competition - and therefore more pro-consumers. The regulation,
defended as a protection against abusive (monopolist) prices, among
other problems may become a way of monopoly perpetuation; it could set
prices and taxes in high levels, by collusion between regulated and
regulators; it is expensive, difficult to execute and to monitor. The
deregulation, despite its importance, is relatively not much debated,
even though it could be a politic to be implemented in several
situations.