Deregulation: Causes and Consequences

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Science  05 Dec 1986:
Vol. 234, Issue 4781, pp. 1211-1216
DOI: 10.1126/science.234.4781.1211


As a consequence of deregulation, there have been fundamental changes in the way transportation and communications firms are conducting business. Companies are finding that they must be driven by market opportunities and financial needs, not by regulatory considerations. Prices must be based on cost, operations must become more efficient, and consumer-oriented product niches must be found. Moreover, deregulation has added a new element in industrial dynamics, by fostering more relations between the various modes of transportation and by cross-fertilization in computer and telecommunication technology. All in all, a more competitive and innovative spirit emerges from deregulation.