Keywords
competition, Teckal doctrine, assignment of public services, demand, supply, equilibrium price, relevant market, territorial self-government unit
Abstract
Public services are often perceived as extraordinary goods despite the fact that they constitute a normal article of market economy and are subjected to economic mechanisms, like any other. Not unlike other entrepreneur, suppliers of public services bear costs and risks of their economic activity – they compete “on the market” or “for the market”. Free competition allows consumers to receive a fair share of efficiencies and welfare. Yet public services are specific in that they must meet certain (defined) criteria, both qualitative and quantitative. This leads to the conclusion that public authorities play a significant role in the definition of specific relevant markets for the delivery of public services – they are responsible for setting the boundaries of such markets. Public authorities play a regulatory role with respect to the relevant markets in question. Costs of the fulfilment of the publically imposed requirements push consumer price upwards, a fact that will make such service less common (universal). Public intervention focuses on mitigating these negative budgetary results for consumers. In a massive number of cases, public intervention eliminates competition from the market due to the common use of direct awards of public contract. The use of the Teckal doctrine erodes efficient competition, which in turn leads to the limitation of consumer welfare.
Recommended Citation
Fornalczyk, M. (2013). Teckal doctrine – exception which becomes rule. internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation), 2(7), 92-103. Retrieved from https://press.wz.uw.edu.pl/ikar/vol2/iss7/7
First Page
92
Last Page
103
Page Count
11
Publisher
University of Warsaw
