Micro and Macro - What Happened to Price, Quality and Choice in the UK Essay

Micro and Macro - What Happened to Price, Quality and Choice in the UK Spectacles Market after Deregulation - Essay ExampleDeregulation There were number of regulations and deregulations that happened in the United Kingdom in the merchandise for specs. In the country, more than 70 percent of the total securities industry for eyeglasses is concentrated among the four big sellers or producers. In the United Kingdom, those who produce and sell eyeglasses and/or contact lenses are called Opticians (Davies et al., 2004, p.4). These deregulations started in the 1900s and happened in 1948, 1958, in early part of 1960s or 1970s and in 1979. Various changes encounter been made during implementation of these deregulations in the country. For instance, in 1900s the demand of the Opticians regarding juristic recognition of status of these opticians has been met. In 1948, provision of spectacles has been incorporated in the NHS. In 1958, The Opticians Act establish a legal monopoly for si ght tests and the dispensing of spectacles, and prohibited most forms of advertising. In 1960s and 1970s, trade restrictions have been removed by the suppressive Practices Legislation Act in many industries across the country on with this spectacle industry. During this time this removal of restriction raised the question that whether professional service industries will be allowed to make happy these facilities or not. The most important deregulation occurred in the 1970s when The Monopolies Commission (MC) opined after investigating the Restrictive Practices in mainly in professional service industries that advertising will be prohibited in the market for spectacles. During this time, the Monopolies Commission in addition concluded that this reduction in advertising of spectacles will subjoin the prices of spectacles and will increase the level of competition among firms in the market for these products by encouraging rude(a) entrants to enter into the industry (Advertising Association (Great Britain), 2002, pp.512-517). Finally, in the 1976 and in 1979, the final deregulations were set in the market for spectacles in the country. During these times reports of two Price Commissions (PCs) revealed that there exists lack of competition in the market for spectacles in the country and suggested that all restrictions on advertising of spectacles have to be removed. These Price Commissions also suggested that provisions for sight tests and prescriptions from the retailing of spectacles have to be separated in the market for spectacles in the country. In 1982, further investigation by the comprehensive Office of Fair Trading (OFT) came up with the suggestion that unregistered retailers are needed to be encouraged to enter into the market and thus to care to reduce the price level. The OFT also suggested to remove restrictions on advertising for encouraging new entry, exhilarating innovation in the product and also for increasing the level of choice of consu mers (Davies et al., 2004, p.9). Effects of deregulation in Price, quantity and consumers choice These deregulations affect prices, quantities as well as choices of consumers of spectacles in the UK market for this product. With the cosmos of the deregulation in the market for spectacles new entrants entered into the market. With the help of this new entry, competition in the market was increased and hence, companies which were selling spectacles