Regulation tends to result in an increased market share for the regulated industry and a smaller market share for unregulated firms offering the same products or services.

Question

Quizplus · Accepted Answer

Regulation often increases the costs and barriers to entry for firms, which can limit competition and potentially reduce the market share of regulated industries if unregulated firms can operate more flexibly and with lower costs.

Regulation Tends to Result in an Increased Market Share for the Regulated