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Forcing Prices Up

OCCASIONAL PAPER

| Tim Wilson

Forcing Prices Up

Grocery prices will always be controversial, especially when government policy is artificially inflating their price.

The ACT government commissioned John Martin to complete a review into the ACT government's supermarkets competition policy. Following the Review the ACT government developed an Implementation Plan designed to centrally direct which supermarkets could bid for operation on different sites.

Despite favouring no cap on the market share of different participants, by introducing restrictions on which chains can bid at different sites the government is effectively imposing a market share cap by stealth.

 

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