Abstract

http://ssrn.com/abstract=1273611
 
 

Citations (5)



 
 

Footnotes (146)



 


 



What Has Competition Done for Consumers in Liberalised Markets?


Kati Cseres


University of Amsterdam - Amsterdam Centre for European Law and Governance and Amsterdam Center for Law & Economics

September 24, 2008

Competition Law Review, Vol. 4, No. 2, pp. 77-121, 2008

Abstract:     
This paper reviews current regulatory approaches designed to correct market failures and distribute the benefits of liberalization to consumers in recently liberalised network industries. Present evaluations of the liberalisation process show that opening up markets to more competition has not yet resulted in either expected levels of competitiveness or in envisaged consumer benefits. Many consumer related failures were little anticipated; legislation to protect and assist consumers was either late coming or inadequate and often lacked effective enforcement. The paper examines market failures primarily related to the demand side; such as information asymmetries, unfair trade practices, unfair standard contract terms, high search and switching costs, and imperfect decision-making processes. It, however, discusses these imperfections in the broader context of market failures related to incoherent regulation and ineffective competition law enforcement and shows how poor coordination between these regulatory fields leads to suboptimal outcomes. The interplay between general consumer protection and specific consumer issues of sector regulation is discussed and elaborates on specific market deficiencies that draw attention to the intersection between consumer protection and competition law. The discussion incorporates theoretical insights from neoclassical and behavioural economics to consumer problems. The paper focuses on what the liberalization process, so far, has done for consumers by looking at and evaluating both the legislative and policy developments and recent proposals at European level as well as actual implementation and enforcement of these legislations at national level. More specifically, it deals with the energy and the telecommunications markets and their recent developments in the EU. Two case studies provide insight on national regulatory approaches: a case study of the liberalization of the Hungarian telecommunications market and a case study of the liberalization of the Dutch electricity market. The paper proposes a new mode of regulation as well as a new mode of coordination among different layers and fields of regulation and enforcement in order to remedy consumer problems and to achieve competitive markets.

Number of Pages in PDF File: 45

Keywords: Competition Law, Liberalisation, Consumers

JEL Classification: K21, K23, L43

Accepted Paper Series





Download This Paper

Date posted: September 26, 2008  

Suggested Citation

Cseres, Kati, What Has Competition Done for Consumers in Liberalised Markets? (September 24, 2008). Competition Law Review, Vol. 4, No. 2, pp. 77-121, 2008. Available at SSRN: http://ssrn.com/abstract=1273611

Contact Information

Kati Cseres (Contact Author)
University of Amsterdam - Amsterdam Centre for European Law and Governance and Amsterdam Center for Law & Economics ( email )
Oudemanshuispoort 4-6
Amsterdam, 1012 CN
Netherlands
Feedback to SSRN


Paper statistics
Abstract Views: 1,049
Downloads: 347
Download Rank: 49,934
Citations:  5
Footnotes:  146

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.437 seconds