The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
The Forum - On Line Opinion's article discussion area



Syndicate
RSS/XML


RSS 2.0

Main Articles General

Sign In      Register

The Forum > Article Comments > Productivity commission part of 'red tape' problem > Comments

Productivity commission part of 'red tape' problem : Comments

By Alan Moran, published 25/10/2005

Alan Moran argues consumer pressure will keep the shipping trade competitive without government regulations.

  1. Pages:
  2. Page 1
  3. All
Alan, you note that "Market forces will always unravel consumer exploitative monopolies." More broadly, whenever there is an unexploited profit opportunity, an entrepreneur will find a way to exploit it. As you suggest, this acts as a constraint on potentially anti-competitive collusion so long as there is an opportunity for entry or innovative alternative provision of services.
Posted by Faustino, Tuesday, 25 October 2005 8:13:32 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
This article touches on the very important issue of the actual content of the so-called "public benefit test" that the ACCC is expected to supply in assessing competition policy.

I have not seen the detail of what these involve but it is highly unlikely that such a test currently includes a proper modelling of the impact on the circular flow of money.

A proper consideration of public benefit in relation to competition policy should include not just the national economic flows but also state, regional and even subregional flows, over time.

At the moment we can get blatantly stupid public benefit tests that allow price drops in retail milk to below that of bottled water and that ignore the longer term impact of the extinguished capital of the disadvantaged producer. If they go out of business there is no demand for the herd of milkers so they are sold off at beef prices and the surplus plant has only marginal value.

You don't need many million dollar capital losses to completely negate any marginally enhance consumer purchasing power from cheaper milk. The shipping conferences are a similar case. Model the whole impact before making any decision to inflict detriment on anyone.
Posted by Perseus, Wednesday, 26 October 2005 1:22:04 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
  1. Pages:
  2. Page 1
  3. All

About Us :: Search :: Discuss :: Feedback :: Legals :: Privacy