A regulated market (RM) or controlled market is a market where the government controls the forces of supply and demand, such as who is allowed to enter the market and/or what prices may be charged.
It is common for some markets to be regulated under the claim that they are natural monopolies. For example, telecommunications, water, gas or electricity supply. Often, regulated markets are established during the partial privatisation of government controlled utility assets. A variety of forms of regulations exist in a regulated market. These include controls, oversights, anti-discrimination, environmental protection, taxation and labor laws.
In a regulated market, the government regulatory agency may legislate regulations that privilege special interests, known as regulatory capture.
See also
- Better Regulation Commission
- Bureaucracy
- Code of Federal Regulations
- Deregulation
- European Union directive
- European Union regulation
- Free market
- Mixed economy
References
