Efficiency of the construction market and need for government regulation

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For a long time in economic theory and practice, regulation is only linked to the need for state intervention in monopolistic markets, by developing uniform, simple regulatory rules to limit and control the monopoly power, the monopoly price, mergers and acquisitions between companies in the same industry and others. In recent years the prevailing opinion that government regulation is particularly necessary in oligopolistic markets where there are several leading, dominant companies that can influence the price, quantity and quality of the product offered. However, this regulatory policy should not apply to common rules and taking into account the specifics of the market/industry, market structure (concentration level) of the various market segments and the relevant economic activity. The aim of the study: 1) Evaluation of the efficiency of the construction market, 2) Demonstrate the need for government intervention, 3) Guidelines for the implementation of the regulatory function of the government.

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  • [1]. Bridge A. C.Tisdell (2006) The Determinants of the Vertical Boundaries of the Construction Firms Construction Management and Economics (22 /8) рр.807-825

  • [2] Gruneberg S. Ive G. (2000) The economics of the modern construction firm. Macmillan Press Ltd.

  • [3] Myers D. (2008) Construction Economics: A new approach. Second Edition. Taylor & Francis. London &New York pp.132-135

  • [4] Tirole J. (2014) Market Power and Regulation. Royal Swedish Academy of the Sciences. http:// www.nobelprize.org.

  • [5] De Valence G. (2003) Market Structure Barriers to Entry and Competition in Construction Markets Dept. of Building National University of Singapore pp. 819-827

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