Economic Efficiency

Give supporting evidence of benefits or prices and product / service options and innovation in your chosen industry. Please ensure an appendix of INDICATIVE ACTUAL PRICES for comparable services from the main competitors and new entrant small firms as at a specific date and sources is included. Guidance: See the following extracts from the EU’s website regarding their suggested benefits of LIBERALISATION: (accessed 20.09.19) “Services such as transport, energy, postal services and telecommunications have not always been as open to competition as they are today. The European Commission has been instrumental in opening up these markets to competition (also known as liberalisation). The Essay must consider What are the advantages of liberalisation? In the EU Member States, services like these have previously been provided by national organisations with exclusive rights to provide a given service. By opening up these markets to international competition, consumers can now choose from a number of alternative service providers and products. Opening up these markets to competition has also allowed consumers to benefit from lower prices and new services which are usually more efficient and consumer-friendly than before. This helps to make our economy more competitive.” Your Critique will include : An explanation of the concept of sticky pricing as described in theory of Oligopoly, where companies have similar prices use NON PRICE activities to compete and if there is evidence of collusion (NB Collusion is illegal) Guidance question: Has the EU’s policy improved or damaged economic efficiency in those businesses participating in these markets?

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