Competitive markets could yield socially optimum results, but although market fail in many cases. If the regulation is successful in generating competition or in replicating its incentives, the next problem to solve is to face the inherent tendency of the competition dynamic toward...

Government plays a necessary role in keeping markets working efficiently and fairly. Market failures –situations in which the invisible hand does not make everyone better off– are among the oldest and most universally accepted justifications for regulation. However, incidents of market...