¶ … Regulation and Market Structures
Industrial or economic regulation can be defined as an act of government or a governmental body to regulate an industry in its entirety. Commonly the most regulates sectors include, the airline industry, banking sector, rail and road, and television broadcasting. The main aim of taking such regulatory measures is for the agency to take closer look (to monitor) on the industries' price and products to ensure that such industries do not start a monopoly and take advantage of consumers, unfortunately such regulatory bodies at times have been prone to working close they with those industries they are purportedly regulating, they in the long run end up working for the industry and legally raise prices, prevent completion and consumers in the end suffer.
Social regulation on the other hand includes those regulations associated with the environmental control, healthy and safety regulations, restrictions on labeling and advertising. There are various key federal agencies involved in social regulation and economic regulation. The Environmental Protection Agency (EPA) for instance has its mandate in controlling pollution. New drugs, regulation on advertisement for foods and drugs are approved by the Food and Drug Administration (FDA) besides providing standards...
Another agency is the Occupational Safety and Healthy Administration (OSHA) which in its mandate requires that employers inform workers about risks involved in work places and mandates firms to reduce such risks.
The National Highway and Traffic Safety Administration (NHTSA) is another federal agency which monitors risks and sets standards for automobiles and highways... standards for airline safety are set by the federal aviation administration.
The consumer product safety administration examines consumer products for risks. Social regulation agencies play a crucial role in society as well as this regulations cast a lot of benefit in terms of information dissemination and risk control, this benefits are considered in light of the cost involved, for instance, the food and drug agency might hold back a new drug for tests in order to reduce the risks involved, if the drug was to be approved, it will be costly to the lives of people.
In this case it's evident that no one knows that an illness might have been prevented with a new drug, but it will be common knowledge when a faulty new drug causes severe illness or death. . The action of this agencies are mostly criticized because of the cost they impose on firms and consumers, the most important thing…
