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Competition Policy and Regulation

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Presentation on theme: "Competition Policy and Regulation"— Presentation transcript:

1 Competition Policy and Regulation
TCA Anant Department of Economics Delhi School of Economics Funcomp: Regulation 11/23/2018

2 Why Regulate Market Failure Instruments of Regulations
Telecom: Network Externalities Financial Sector: Systemic Stability Professional Services: Information Instruments of Regulations Entry Conditions: Insurance, Power, Professional Services, Banks… Pricing: Telecom Quantitative Restrictions: Environmental Regulation Conduct Rules…. Funcomp: Regulation 11/23/2018

3 Competition Policy What is Competition Policy
Market Oriented Theory Based Mostly about Conduct Though Mergers analysis deals with structure The Key difference is one of focus and Objectives Obectives of Regulators! Funcomp: Regulation 11/23/2018

4 Competition and Regulation
Case Study Professions Idiosyncratic, Skill Based, Skill is embodied in People What is the problem? Information Externalities So Self Regulation Funcomp: Regulation 11/23/2018

5 Areas of Concern Source of Training Requirements of Qualification
Entry Source of Training Requirements of Qualification Organizational Restriction Behaviour Restriction Advertising Pricing IS “IT” MORE BURDENSOME THAN NECESSARY Assumptions Medicine: Doctor patient Law- Litigation Implication regulatory Gap Capture Funcomp: Regulation 11/23/2018

6 Let us return to the Larger Issue: So what are the Problems
Conflict in Objectives Pricing Formulae Access Deficit Charge Overlap in Mandates RBI clears mergers of banks DOT would need to approve merger of telecom companies How will they proceed? Stability Coverage or Competition Funcomp: Regulation 11/23/2018

7 Problems…..2 Convergence and Regulatory Coverage Capture
Railways and Telecom Power and Telecom Banks and Financial Markets Capture Technical Focus Funcomp: Regulation 11/23/2018

8 But We need Sectoral Regulators We Need a Competition authority SO
Funcomp: Regulation 11/23/2018

9 To Summarize Cooperation between Regulators and CA
Forms of Cooperation Different Models Level of Cooperation Implication for Structure of authority Sectoral authorities should make competition assessment a part of their overall dialogue with stakeholders . The advocacy and suo-motu powers gives the CA the power and obligation to explain their concern to the regulator Funcomp: Regulation 11/23/2018

10 Some other issues Domain of Competition
Local, Regional National International Conflict with public Policy Employment Environment Embedding the authority in the constitutional doctrine Leniency Criminal Sanction The Judgment Proof Problem Funcomp: Regulation 11/23/2018

11 Comments welcome anant@econdse.org
The Work goes on…. Comments welcome Funcomp: Regulation 11/23/2018

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