Four
major pieces of legislation collectively known as antitrust law are:Sherman Act
restricts contracts and combination of trade among states.
Clayton
Act deals with price discrimination thatprohibits the formation of interlocking
directorates that prohibits trying contracts and lastly prohibits the
acquisition of stocks of competing corporations.
The
Patman Act deals with price discrimination and made it illegal for an
organization to engage in price discrimination.
Federal
Trade Commission deals with unfair competitive practices both on the request of
the injures organizations as well as on the own bases.(Fier & Liebenberg, 2013)
Economic
Regulations in Oligopoly & Monopoly & Its Functions:
Oligopoly: this market structure is
different from that of monopoly. In this market there is a limited competition
because of small number of buyers and sellers in the market. There are only few
large firms are there in this market as the sellers and buyers are less. This
market also restricts the entry as there are high barriers to the entry of
firms in the market this limits the competition. Oligopolists have choice to
produce either homogeneous products or differentiated products (Conditions for an
Oligopolistic Market, n.d.). in
case of oligopoly industrial revelution will help customers in getting things
on fair prices that government regulates.
In case of
monopoly there will be a sole owner or we can say single seller. The entry to
this market structure is restricted for other firms. And the sole owner is the
price leader and can choose any price independent of the market price as the
monopolist is a price maker not price taker. So to maintain a balance between
the prices of the market and the monopolist is a difficult task and this will
be governed by the federal government or economic regulations.So, industrial regulation will
help the buyers to get the products on fair prices, which are governed by the government(Fier & Liebenberg, 2013) .
Social Regulations:
Social regulation – Social
regulation are concern with the protection of the rights and well-being of
society as whole. It includes protection of the environment, safety in the
workplace, protection of the rights of workers, health, and protection of
buyers from the unaccepted behavior of sellers. As society or environment play
an important role in any market structure it is important to keep in mind the
needs of the society as a whole and these social regulations help in satisfying
the needs and wants of the society.
Major Functions
of the Five Primary
Federal Regulatory Commissions:
·
Federal
Nuclear Commission: This regulatory body takes care of the production
restriction and usage on nuclear weapons and also frames regulations for
nuclear energy and its usage for constructive purposes as well asrestrictions
on nuclear weapons.
·
Federal
Energy regulation commission: This regulatory body deals with theusage of petroleum,
hydro-electricity , oil, and other forms ofenergy used for industrial as well
as domesticand other commercial purposes(Madar, 2002) .
·
Federal
Trade commission: The Federal trade commission forms rules and regulations in
relation to the unfair trade practices that take place in the nation which may
worse affect the economy of a nation. (Madar, 2002) .
·
Federal Accountability act: An Act
providing for conflict of interest rules, restrictions on election financing
and measures respecting administrative transparency, oversight and
accountability.
·
Federal Sustainable Development Act: An
Act to require the development and implementation of a Federal Sustainable
Development Strategy and the development of goals and targets with respect to
sustainable development in Canada, and to make consequential amendments to
another Act.(Madar, 2002)
So
this way federal plays an important role in the different market structures and
as well as in the social or environmental factors. It is very important to have
a regulatory body so that an economy as well as a society both can work
smoothly keeping in mind the consumer’s welfare and their demand satisfaction.
References:
Fier, S. G., & Liebenberg, A. P. (2013). Market
Reaction to Potential Federal Regulation in the Insurance Industry. Journal
of Insurance Issues , 1-34.
Madar, D. (2002). Rail Mergers,
Trade, and Federal Regulation in the United States and Canada. Federalism
and Surface Transportation , 143-159.
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