Business Market Structure & Legal Framework: Competition, Regulation & Legislation, Slides of Competition Law and Policy

Download Business Market Structure & Legal Framework: Competition, Regulation & Legislation and more Slides Competition Law and Policy in PDF only on Docsity! Competition, Legislation and Regulation Docsity.com Market Structure • The degree of competition in an industry: – Concentration Ratio (CR) – The proportion of market share accounted for by a number of firms in the industry – A five firm CR of 60% means the top five firms in the industry account for 60% of total sales Docsity.com Market Structure • Oligopoly – Competition between the few – industry dominated by relatively small number of large firms – Barriers to entry – Non-price competition – Price stability? – Homogenous or highly differentiated/branded – Potential for collusion – Potential for high profits Docsity.com Market Structure • Duopoly – Industry dominated by two large firms – Market leader – Price leader – Barriers to entry – Non-price competition – Potential for abnormal profit Docsity.com Market Structure • Monopoly – where firm is the industry or where one firm dominates the market – Monopoly power is said to exist if market share > 25% – Natural monopolies – water, gas, electricity – High barriers to entry – Abnormal profits – Can exercise control over price OR output – Monopoly power may be necessary for development of some products Docsity.com Legal Framework • Consumer legislation: – Sale of Goods – Trade Descriptions – Consumer Protection – Food Safety – Supply of Goods and Services – Weights and Measures Docsity.com Legal Framework • Employee Protection: – Health and Safety at work – Minimum Wage – Discrimination – Unfair Dismissal – Recruitment – Redundancy – Trade Union Legislation – Contracts and terms of work – Working Time Directive – Disabled Persons Docsity.com Legal Framework • Other aspects affecting business: – Employers liability insurance – Display screens (VDUs) – Fire precautions – Data Protection – Accessibility legislation – Hazards and risks – Working environments – heating, lighting, ventilation, etc. – Patents – Licences – Planning Laws Docsity.com Regulation • Forms of anti-competitive behaviour – Price fixing – Cartels – Collusion – Predatory or destroyer pricing – Distribution agreements – Insider dealing/trading Docsity.com Self Regulation • Where business/industry monitors its own behaviour – often through an agreed code of practice. e.g. – PCC – Press Complaints Commission – Portman Group – alcoholic drinks industry – FSA – Financial Services Authority – BMA – British Medical Association Docsity.com