Renationalisation might well be looked at in the context of the rail sector Evaluate the effects of privatisation with various politicians wanting to take it back into state control. The return on competition, efficiency, prices of some franchises to the government allows for a direct comparison of and the whole economy. state and private control. 26 Competition Explain the reasons why The here should be on the goal of regulation rather than its form and policy governments may be concerned that some sectors may be more likely to need regulating than others with competition, monopolies and run industries for example). mergers in industry. Much of the content here will overlap with the evaluation of monopoly and Understand the role of competition oligopoly markets from earlier in the term, and that an increase in authorities and regulators in competition and contestability isn’t necessarily desirable in all promoting competition and circumstances (cooperation between firms is permitted under EU law in contestability in markets. certain circumstances, for example). Learners should understand that Probably worth looking at some of the watchdog bodies to see how regulators can affect the degree of regulation works (or not) in practice. Water, Post and Rail all have contestability in a market. interesting features. Also worth looking at the CMA and some of its recent cases domestic energy for example. – Learners should be able to evaluate the extent to competition and Consider the reasons for, and implications of, regulatory capture. You could contestability are desirable. link really well to the financial crisis and the inability of regulators to predict it or respond to it. Detailed knowledge of UK and EU competition legislation is not required. Detailed knowledge of regulatory policies is not required. Market Market Success and Market Failure. Success
Evaluate the effects of privatisation on competition, efficiency, prices and the whole economy. Renationalisation might well be looked at in the context of the rail sector with various politicians wanting to take it back into state control. The return of some franchises to the government allows for a direct comparison of state and private control. 26 Competition policy Explain the reasons why governments may be concerned with competition, monopolies and mergers in industry. Understand the role of competition authorities and regulators in promoting competition and contestability in markets. Learners should understand that regulators can affect the degree of contestability in a market. Learners should be able to evaluate the extent to competition and contestability are desirable. Detailed knowledge of UK and EU competition legislation is not required. Detailed knowledge of regulatory policies is not required. The here should be on the goal of regulation rather than its form and that some sectors may be more likely to need regulating than others run industries for example). Much of the content here will overlap with the evaluation of monopoly and oligopoly markets from earlier in the term, and that an increase in competition and contestability isn’t necessarily desirable in all circumstances (cooperation between firms is permitted under EU law in certain circumstances, for example). Probably worth looking at some of the watchdog bodies to see how regulation works (or not) in practice. Water, Post and Rail all have interesting features. Also worth looking at the CMA and some of its recent cases – domestic energy for example. Consider the reasons for, and implications of, regulatory capture. You could link really well to the financial crisis and the inability of regulators to predict it or respond to it. Market Success Market Success and Market Failure.
Eduqas%20Economics%20Course%20Outline%20(from%20September%202015).docx