Economic regulation essay

Economic regulations on networked industries such as telecommunications, banking and electricity is very important and is supposed to contribute to the higher quality of services an higher customer satisfaction along with growing competition within industries. However, in actuality, the situation may be quite different from the ideal.

In this respect, it should be said that telecommunications, banking and electricity have quite different results regardless certain similarity in the goals of the regulatory policy in these industries. To put it more precisely, the telecommunications industry may be characterized by the highest quality of services, low price, higher level of customer satisfaction due to affordable prices and high quality, and permanent appearance of new products. Such leadership of telecommunications may be explained by the innovative character of this industry that stimulates heterogeneity of the industry and high quality of products and services and their diversity. Baking may be ranked in the middle since its prices, quality and competition is on the average level compared to the two other industries due to the presence of relatively high competition and traditions that associate banking industry with high quality of services (Gitlow 388). As for electricity, this industry may be ranked the last because it is characterized by the high level of rigidity and the lack of competition due to the presence of the large companies which control the entire industry. In such a way, they tend to monopolization that naturally increases the price and decreases the quality.