Price Caps: Cure or Curse?

Another method of price intervention available to governments to address market failure, price caps are often controversial. Recent examples include: mobile roaming charges in the EU, payday loans, pharmaceuticals and (often discussed) rent controls.

You need to be able to evaluate the arguments for and against this method and show that you understand the potential problems that they may face.

Take a look at these resources and articles:

Tutor2U summary:

Payday loans:

Housing rents:

Housing rents:

Assessing Price Caps




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s