Markets & Prices Creating more competitive markets
Competition is generally regarded as more efficient and better for consumers. As a result, governments have introduced laws to prevent firms in some markets becoming too large and acting like monopolies or oligopolies. The Competition and Consumer Protection Commission (CCPC) is the State agency responsible for promoting fair competition in the marketplace and protecting the interests of consumers. It can prosecute businesses that engage in unfair competition. Deregulation (or market liberalisation) is where governments remove barriers such as laws or restrictions in a market in order to make it easier for new suppliers to compete.
¶ ¶ Research
1. RTE Radio Radio 1 and RTE 2FM were once the only radio stations allowed to broadcast in Ireland. However, deregulation of the radio market has allowed new national and local stations to enter the market.
(a) Identify the different radio stations now competing for listeners in your local area. (b) Has deregulation been a good or a bad thing for radio listeners in your area? Give reasons for your answer.
2. Bus Éireann used to be the only bus company allowed to operate bus services between Irish towns. Deregulation has encouraged new bus companies to enter the market. (a) Identify the different bus companies that provide services in your local area.
(b) Is the bus market in your area a monopoly, an oligopoly or a competitive market?
(c ) Has deregulation been a good or a bad thing for bus users in your area? Give reasons for your answer.
Did you know?
Sometimes letting the free market operate can be considered damaging to the public interest. In such cases the public may demand that governments impose rules to control the market. For example, governments sometimes introduce rules to prevent popular sporting events, such as major soccer, rugby, hurling or football tournaments from only being shown on pay-to-view subscription television.
