Abstract:
Consumers have traditionally called for government intervention, when the marketers fail to produce a socially desirable outcome. Governance is that broad field of economics, which concern the design of regulatory system through which exchange is smoothly conducted. The economic theory of regulation, most often examines how collective action by individuals, through the auspices of government, affects the incentives of participants in markets. The basic assumptions of approach to government regulations are: • Industrialization gives rise to concentration of power, increased uncertainty, performance failures, uncompensated costs, unfair trade practices, miscommunication and adverse distributional effects. • Regulation must promote public interest or social values that cannot be derived exclusively from monetary or market-oriented measures. • With proper implementations, regulation promotes higher levels of market efficiency and greater consumer choice. • Regulatory intervention ma...
