Comments on: Competition for the ACC? http://www.progressiveturmoil.com/2009/10/27/competition-for-the-acc/ it's all around us Mon, 09 Nov 2009 06:21:30 +0000 hourly 1 http://wordpress.org/?v=3.0 By: jps http://www.progressiveturmoil.com/2009/10/27/competition-for-the-acc/comment-page-1/#comment-366 jps Sun, 08 Nov 2009 01:31:58 +0000 http://www.progressiveturmoil.com/?p=380#comment-366 @Steven: These are certainly the big effects. What interests me is whether making some of these markets contestable will create net efficiencies. By liberalising, we could let the market to sort it out, but if we already have a basically efficient structure then why should we incur the costs associated with that experiment? @Paul: Yes but we do elect the government, and we are collectively responsible for the financial performance of ACC. @Steven: These are certainly the big effects. What interests me is whether making some of these markets contestable will create net efficiencies. By liberalising, we could let the market to sort it out, but if we already have a basically efficient structure then why should we incur the costs associated with that experiment?

@Paul: Yes but we do elect the government, and we are collectively responsible for the financial performance of ACC.

]]> By: Paul Walker http://www.progressiveturmoil.com/2009/10/27/competition-for-the-acc/comment-page-1/#comment-362 Paul Walker Fri, 06 Nov 2009 03:01:50 +0000 http://www.progressiveturmoil.com/?p=380#comment-362 "At present, we Kiwis collectively own & operate a no-fault insurer, the ACC, which has a statutory monopoly in several big insurance markets." Own? As Grossman/Hart/Moore point out, ownership is having residual control rights and I hadn't noticed that "we Kiwis" had such rights. Those rights are firming in the hands of the government and its lackeys. “At present, we Kiwis collectively own & operate a no-fault insurer, the ACC, which has a statutory monopoly in several big insurance markets.”

Own? As Grossman/Hart/Moore point out, ownership is having residual control rights and I hadn’t noticed that “we Kiwis” had such rights. Those rights are firming in the hands of the government and its lackeys.

]]> By: steven http://www.progressiveturmoil.com/2009/10/27/competition-for-the-acc/comment-page-1/#comment-324 steven Wed, 28 Oct 2009 11:37:55 +0000 http://www.progressiveturmoil.com/?p=380#comment-324 If there are economies of scale, won't the most effecient provider naturally become the monopoly holder. In this case ACC should be the most effecient provider as it has the economies of scale. If another provider can do it cheaper then we will have competition and surely this would lead to a more effecient outcome. If another provider cannot be more effecient (than ACC with economies of scale) then how is this any different wot what we have already? except it now proves we have the most effecient provider, because the market is contestable. If there are economies of scale, won’t the most effecient provider naturally become the monopoly holder. In this case ACC should be the most effecient provider as it has the economies of scale. If another provider can do it cheaper then we will have competition and surely this would lead to a more effecient outcome.

If another provider cannot be more effecient (than ACC with economies of scale) then how is this any different wot what we have already? except it now proves we have the most effecient provider, because the market is contestable.

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