Rate regulation
Rate regulation refers to the process by which government agencies establish and enforce rules governing the prices that companies can charge for their products or services. This is often done in industries that are considered essential to the public interest, such as utilities like electricity, water, and gas.
One example of rate regulation is in the telecommunications industry. In many countries, government agencies set the rates that telecommunications companies can charge for services like phone calls and internet access. This is done to ensure that prices remain affordable for consumers and to prevent companies from engaging in anti-competitive behavior.
Another example is in the insurance industry. Insurance companies are often subject to rate regulation to ensure that premiums are fair and reasonable. This is done to protect consumers from being overcharged for coverage.
Overall, rate regulation plays an important role in ensuring that essential services remain accessible and affordable for the general public.
Examples of Rate Regulation:
- Telecommunications industry
- Insurance industry
For more information on rate regulation, visit Wikipedia.