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Extra resources for Aristotle in 90 Minutes
It is accordingly less costly to society to have production carried out by one ﬁrm than by many. Thus, rather than have three railway or electricity companies laying separate networks of rails or cables where one would do, it may be more efﬁcient to give one ﬁrm a monopoly subject to regulation of such matters as prices and access to the network. Determining whether a natural monopoly exists requires a comparison of demand for the product with the extent of the economies of scale available in production.
For other deﬁnitions of good or better regulation see Mandelkern Group on Better Regulation, Final Report (Brussels, 13 Nov. 2002) (‘Mandelkern Report’). 10 If Parliament is yet to provide a mandate because no regulatory statute has been passed in an area— say, when a regulatory Bill is being debated—any discussion of ‘good’ regulation is more open-ended than usual. Reference, in such circumstances, is likely to be made to the four criteria other than the mandate that are discussed here and also to governmental claims to possess a mandate for a certain regulatory approach (based, for instance, on manifesto statements) and to more general arguments concerning social justice.
Veljanovski, ‘Regulation by Cost Beneﬁt Analysis’ (1984) 62 Public Administration 51. 23 See Prosser, Law and the Regulators, 15–24; ‘Regulation and Social Solidarity’ (2006) 33 Journal of Law and Society 364–87. 24 C. Foster, Privatisation, Public Ownership and the Regulation of Natural Monopoly (Oxford, 1992), ch. 9. 25 Prosser, Law and the Regulators, 24. See also Chapter 2, above, on rationales for regulating and Chapter 15, below, on the application of cost-beneﬁt testing to regulation. 32 FUNDAMENTALS The Role of the Five Criteria The above ﬁve claims, it can be seen, are all fraught with difﬁculties but collectively they constitute a set of benchmarks for assessing regulatory regimes.