The Wild West ... the outback ... The new world of the 1800s was a time of true liberty. People stood on their own merits. They won or they lost and they reaped the rewards or swallowed the consequences. There were no cubicle dwelling civil servants hell bent on saving you from yourself. No planning permits no licenses no permissions no heritage overlay no bylaw no regulators no inspectors. And guess what ... it worked

This site is set up to provide a forum for a number of like minded professional economists to post and comment on contemporary issues. There are a number of regular contributors whose bios are made available on the site. Most if not all of these contributors use a pseudonym for the simple reason that they are practicing economists who must take into consideration the commercial implications of posting their opinions.

While some may feel that this is a bit of a gutless approach it is the only way we can ensure free and open discussion without jeopardising our paycheques.

Tuesday, July 14, 2009

ACCC to probe big fuel discounts

ACCC to probe big fuel discounts

Is it just me, or has anyone else noted the absurdity of the Australian COMPETIION and Consumer Commission investigating what can only describe as excessive competion. Although I dont really know what that means ... too much competion? prices too low? too much benefit to that other C word .. Consumers?

Maybe it means no one is looking after the little guy, the small local petrolstation, the one that bob from the footyclub runs. The one that cant compete effectively with the big boys .... For gods sake who is PROTECTING bob and his overpriced petrol from competion!

This is all rather suboptimal from a governance point of view. I mean how confusing is it for an organisation to be chartered with the protection of competition and consumers and then have to act for special interests.

If society wants to enforce inefficiency then we really should establish a new commission one with clear objectives ... the Australian Protection and Subsidisation Commission ... their mandate could be to represent vested commercial interests and block mergers on the grounds they would create too much efficiency and too low prices.

The APSC could stand against subadditivity. Its charter could be the advancement of diseconomies of scale and scope.


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