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One of these is deregulator or privatization of public enterprises or utilities. Deregulation is a world wide phenomenon. But experience of power failure in California and Mumbai reveal certain issues which has to be taken into account; if a transition on the path of deregulation has to be kept smooth.
If the deregulation system has to succeed, then we will have to keep checks on the motion of short term profit maximization. Any one may have incentive to maximize profit but when markets are not working perfectly these are always opportunities which cast blame on the market as a whole.
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While getting introduced with various concepts, it would strategically be unfair to venture in to the analysis of on going policies unless a reasonable conceptual coverage has been
As you know, the principal-agent problem stress the effect of asymmetric information between the principal and the agents on economic outcomes, the equilibrium in a principal-agent
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