Abstract
This chapter introduces the subject of the study this book reports—the EU, the internal market, competition rules and the delivery of welfare services. Establishing the main issues addressed—the tensions created by differing national rules and regulations on welfare provision and internal market rules—the chapter goes on to set out the structure of the rest of the book.
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Notes
- 1.
“The concept of universal service refers to a set of general interest requirements ensuring that certain services are made available at a specified quality to all consumers and users throughout the territory of a Member State, independently of geographical location, and, in the light of specific national conditions, at an affordable price” Cf. Article 3(1) of Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive), (2002) OJ L 108/51.
- 2.
Averitt and Lande (1996–1997, p. 723).
- 3.
Mansfield (1985, p. 232). He states that: [P]erfect competition requires that consumers, firms and resource owners have perfect knowledge of the relevant economic and technological data. Consumers must be aware of all prices. Labourers and owners of capital must be aware of how much their resources will bring in all possible uses. Firms must know the prices of all inputs and the characteristics of all relevant technologies. Moreover, in its purest sense, perfect competition requires that all these economic decision-making units have an accurate knowledge of the future together with the past and present.
- 4.
According to Mansfield product homogeneity is describes as follows: [P]erfect competition requires that the products of any one seller be the same as the product of any other seller. This is an important condition because it makes sure that buyers do not care whether they purchase the product from one seller or another, as long as the price is the same. Note that the product may be defined by a great deal more than the physical characteristics of goods.
- 5.
According to Mansfield mobile resources are defined as follows: [P]erfect competition requires that all resources be completely mobile. In other words, each resource must be able to enter or leave the market, and switch from one use to another, very rapidly. More specifically it means that labour must be able to move from region to region and from job to job; it means that raw materials must not be monopolizsed; and it means that new firms can enter and leave an industry.
- 6.
Hirshleifer (1984). According to him: A perfect market would instantaneously digest the inputs and proclaim the correct market-clearing price. But no such magic machine exists in the real world. So a farmer bringing vegetable to a city produce market may by cleverness or chance realise a sale at a price higher than the (unknown) true equilibrium or unluckily, the farmer may accept a price lower than might have been obtained.
- 7.
Scherer and Ross (1990).
- 8.
Arrow (1963, pp. 941–973).
- 9.
Craswell (1994).
- 10.
Dolfsma et al. (2004).
References
Arrow K (1963) Uncertainty and the welfare economics of medical care. Am Econ Rev 53(5):941–973
Averitt NW, Lande RH (1996–1997) Consumer sovereignty: a unifies theory of antitrust and consumer protection law. 65 Antitrust L, p 723
Craswell R, ‘Freedom of Contract’ (1994) Chicago law and economics working paper no. 33
Dolfsma W et al (2004) Market and society: how do they relate, and contribute to welfare? http://hdl.handle.net/1765/1824
Hirshleifer J (1984) Price theory and applications, 3rd edn. Prentice Hall
Mansfield E (1985) Microeconomics: theory and applications, 5th edn. Norton, New York
Scherer FM, Ross D (1990) Industrial market structures and economic performance, 3rd edn. Houghton Mifflin Co, Boston
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© 2011 T.M.C.ASSER PRESS, The Hague, The Netherlands, and the authors/editors
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Nistor, L. (2011). Introduction. In: Public Services and the European Union. Legal Issues of Services of General Interest. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-90-6704-805-7_1
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