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Regulation and its impact on the conduct of an entrepreneur
Münzbergerová, Adéla ; Horáček, Vít (advisor) ; Liška, Petr (referee)
1 Abstract Diploma thesis: Regulation and its impact on the conduct of an undertaking Regulation is a very large term that describes a wide scope of activities of the state and other entities that aim at channelling the activities of the undertakings in order to enhance competition and protect consumers and other third parties. This paper analyses the economic and other rationale for regulating markets and describes techniques of regulation. Regulation mainly focuses on mitigating or removing market failures that are caused by a number of factors: existence of monopolies or natural monopolies, windfall profits, externalities, information inadequacy, unequal bargaining power, anticompetitive behaviour and predatory pricing, use of public goods or problems with continuity and availability of services. These market failures can be removed or mitigated by a number of different regulatory strategies that are chosen by the relevant state. The choice of regulatory strategy shall be based on a thorough regulatory impact assessment carried out before the implementation of the specific measure. Regulatory strategies can be grouped in the following regulation schemes: first of all, command and control regulation, the strictest type of regulation, under which the legislator and/or regulator impose a specific rule...
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