Microeconomics › Section K · Monopoly and antitrust policy › Topic K.4
The deregulation experiment
Regulation, once given, is hard to limit - and by the 1970s, price controls had spread far beyond natural monopolies into markets that had no such excuse. The great deregulation experiment tested what happens when the controls come off, and taught two lessons: competition works, and regulation can be captured by the very firms it polices.
In this topic
- The pendulum of policy
- The doubts of the 1970s
- The airline case: forty frozen years
- Worked example: what deregulation did to the skies
- Regulatory capture
- Why capture is so hard to cure
- Deregulation's own costs
- The pendulum swings back
- Worked example: evaluating a deregulation proposal
- Common mistakes to avoid
- Key takeaways
This topic is part of Wuanberri Pro. Checking your access…