The Role of Competition in the Regulated Industries
Ideally, competttton and regulation are opposite sides of the same coin. In theory, both are directed at the same objectives: efficient use of resources and protection of the consumer against exploitation. The means to these ends, however, are different. To be effective, competition requires rivalry among many sellers and freedom of entry into markets. It envisions a regulatory scheme in which the operation of autonomous market forces obviates the need for detailed government supervision. This is the philosophy embodied in the Sherman Act of 1890.