If a market is already fully competitive then high barriers to entry are irrelevant. On the other hand, low barriers to entry do not guarantee that the market will be effectively competitive. However, price collusion, output controls, unified marketing policies, profit pooling, or allocation of firms' investment are good indications of Oligopoly Collusion Behavior. Thus, observing firm behavior as opposed to their structure will be necessary in determining if competition is effective. In addition to efficiency, effective competition tends to yield other benefits which are often considered to be broader elements of good performance namely, equity, freedom of choice, and social diversity.
Antitrust law operates far better as a preventive and educational tool . . .
Indeed, in an earlier statement on electric restructuring, the Division outlined a regulatory action plan. Develop methods to measure and monitor the potential of market power in the market. Methods of monitoring the development of competition and measuring whether effective competition exists. The potential for market power abuse is real - twenty years after deregulation was initiated, economists are still raising the issue of market power in telecommunications. Until competition in the generation of electricity proves to be both effective and sustainable, the benefits of competition, like King Arthur's Camelot, will only prove to be imaginary.