Definition
- Regulation
- Regulation limits growth because competition law gives the government power to block certain mergers, or to allow them only if the firm sells off some parts.
Example
Can you think of an example of regulation?
Two large supermarket chains propose to merge. If shoppers would lose choice, the Competition and Markets Authority can block the deal or demand some shops are sold.
Test yourself
Can you name the four things that can stop a firm growing, however much it wants to?
Learn it properly: the module
Also in: Nudges and choice architecture