Ρύθμιση ή απορρύθμιση της επιχείρησης με δύναμη στην αγορά

Αλεξόπουλος, Κωνσταντίνος Β.

Regulation or deregulation of a firm with significant market power

Master Thesis

Author

Αλεξόπουλος, Κωνσταντίνος Β.

Date

2014-10-30

Abstract

This essay investigates the issue of regulation or deregulation of a firm with a significant market power (SMP). We know that the state government intervenes in order to correct several abnormalities existing in the market. Thus, in this essay we search the positive and negative impacts that this intervention may have in the mechanisms of the market. We are going to demonstrate, why the state intervention becomes a recipient of several negative comments, even when its purpose is to improve competition and to increase social prosperity. In addition we will introduce the pathologies of these interventions, their origins and how can we come up against them. Moreover, we are going to analyze the financial, social and political environment where these firms operate in the market, as well as all the particular characteristics of the industry that the regulations are going to be implemented. We will examine all the abusive strategies, used by the firms in order to operate independently from their competitors, using price fixing techniques without losing any market share. We are going to set and define the regulating framework that will be used in order to maintain competition in the market, having always in mind the means that the regulator has in his disposal. Just by setting the rules of the cooperation and securing competition and public interest, we are lead to the dilemma of regulating or deregulating the market itself. At first hand this contradiction is evident with the policy of competition aiming to the protection of the independent bodies and their free participation in the market, having always in mind that the state government intervenes in order to protect the public interest. Given this as a fact, that the uncontrollable use and practice of the private sector may impose a danger in the existence of the market itself as well as the competition, we try to impose a regulating framework through a series of interventions. Finally, there will be an attempt to show and argue that the protection of competition within the market and public interest may not be that contradictory as it may appears to be.