Exploring the Unintended Policy Consequences of Competition: A Conundrum
In recent years, competition policy has become a hot topic. This is due to the recognition that competition is an important factor in economic success, and that governments need to take steps to ensure that markets remain competitive. However, there is increasing evidence that the unintended consequences of competition policy can be significant.
In particular, it has become clear that competition policy can have an impact on consumer welfare, which can be both positive and negative. For example, while competition policy may lead to lower prices for consumers, it can also lead to reduced product quality and decreased innovation. This has been termed the “competition conundrum”.
It is becoming increasingly clear that governments need to be more aware of the potential unintended consequences of competition policy. This is particularly important in the current economic climate, where competition is more important than ever.
source: Phys.org