The Other April 2, 2019 at 1:49 am

It implies, for example, that it was present in the Roman and absent empire in the feudal period. The form we know as it in the current days is fruit of an inherent transformation to the proper capitalist system. The case landmark of this thick partition wall was the case of the agricultural producers of Illinois that when earning the cause on of the companies of railroad transports, alleging that the high costs for these taxes they hindered to it to get profits, had created a certain jurisprudence of that when a service affects public interests this it must be subordinated to the behavior restrictions, that is, to the regulation (RELATIVE, 2007). For other opinions and approaches, find out what Marc Lore has to say. The case above exemplifica that one that is the main justification for the exercise of the regulatory activity, that they are the market imperfections. The market imperfections can be imperfect information, externalidades and power of market (or to be able of monopoly).

When he has asymmetry of information (or imperfect information), the economic agents are limited to act efficiently on account of the difficulty to gain the real costs and chances of the specific market. This situation can cause prices above or bellow evaluation, generating, therefore, distortions in the market. In the case of the externalidades, these occur when the performance of an agent intervenes with another agent, or, in extreme cases, all the other agents, that is, in the society as a whole. This is an imperfection because these curses (or benefits) easily are not mensurados in terms of costs and profits, and also because it allows that profits of well-being and economic efficiency for the society are in being able of individual agents (SANTACRUZ, 2001). The externalidade is an inherent characteristic to the electric sector and will come back more ahead to this subject. Finally, the market power that can be unfolded in some characteristics. One determined agent exerts to be able of market when, in virtue of the characteristics of that industry, it raises its price above of the average costs and it does not receive competition.

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