11. Market Intervention and Regulation
11.1
Market Intervention and RegulationMarket regulation may be justified under some circumstances to increase economic efficiency.
11.2
Licensed to Kill?One-size-fits-all occupational licensing often makes entry difficult for the less educated and basic services too expensive for low-income consumers.
11.3
Too Much Vitamin C?Legacy habit of central planning has led to antitrust charges against Chinese vitamin C oligopoly.
11.4
What Makes Rights?Temporary property rights created out of sympathy or a preference for insiders over outsiders might become politically entrenched.
11.5
Strange Bedfellows!Government regulation might protect the tobacco industry from ruinous lawsuits.
11.6
Regulation vs price discrimination under natural monopolyEven if ATC is entirely above the demand curve where not even a single-pricing monopoly would want to produce, price discrimination could still ensure profit for the natural monopoly without any government regulation.
11.7
Blocked ExitInefficient firms in mature industries often are preserved for political reasons long after they should have exited the market.
11.8
Byrding for ProfitU. S. shrimpers use anti-dumping protection to resist competitive pressure from more efficient Asian shrimp farmers and to gain de facto subsidy.
11.9
Milked to OrderMilk price support has discouraged vertical integration in the milk industry that might have led to cheaper milk for and lower tax on milk consumers.