For music consumers, the shift to the computer-file medium

For music consumers, the shift to the computer-file medium happened years ago. This is particularly true with demographics that have essentially come of age through the evolution of the personal computer, the internet and ecommerce.   Over the course of the early 21st century, â€Å"online buying was most popular among 25-34 year olds and least attractive to the 65+ seniors.† (Vargas, 1)   This same demographic is composed of individuals who, over more than half a decade of unrestrained music downloading access, have come to expect a number of opportunities.Specifically, there is an immediacy to this access that transcends traditional music buying methods, with the click-and-download process bypassing the need to go to a store or wait for an online-ordered item to arrive in the mail.   Songs instantly appear on the consumer’s hard-drive and may subsequently be listened to and burnt to a Compact Disc.   With literally infinite peer-to-peer communities emerging co nstantly to improve the organization, presentation and reliability of such acquisition methods, users still have countless ways to find music for free.Students   at the University of Maryland reflect this exact pattern, and have thus become part of a pattern which runs afoul of music industry needs and legal perceptions.   The proposal here will seek to resolve the impasse by researching the prospects for a partnership with legal music downloading services which will allow students to continue to download for free but under more lawful terms.2. Introduction and BackgroundThe University of Maryland, like all major universities and campuses across America, is faced with an interested and difficult challenge with regard to the issue of illegal music downloading.   It is a well-recognized fact that many students use the high-speed internet provided by the campus itself in order to use peer-to-peer trading programs that allow for the free downloading of pirating music, movies and o ther unauthorized digital items which are characterized as intellectual property.The opportunity for students to engage in this activity represents a distinct conflict of interest for the university, which does not permit the use of its channels for the piracy of music, but which also supports the entitlement of individuals to use the computer technology at their disposal with relative freedom within the limitations of the law.   This proposal will call for a research investigation which effectively determines the best way for the university to improve the legal adherence of its students while simultaneously preserving the student body’s ability to use downloading services according to their desires.The background history of this problem concerns the expansion of technological opportunities and a relative inability of music companies and campuses alike to remain abreast of resulting expectations amongst average music consumers such as those spotting college campuses.  Eve n prior to the complicating arrival of internet technologies, the issue of preserving intellectual property has long been a morass of legal and philosophical entanglements for both the originators and the consumers of said property.On the college campus and in the music industry, this issue takes particular precedence as we struggle today to find balanced ways to compensate artists, entertainers and the portals through which they are delivered to us while simultaneously serving our appetites as consumers who are not being treated well by music gatekeepers.   Bootlegging, a term used throughout history to describe all manner of counterfeiting and marketing of ill-gotten or illegal contraband, today almost automatically conjures up thoughts of the internet.This new frontier for the exchange of intellectual properties has evolved into an abyss of piracy forums and file-sharing operations, as online discussion forums, weblogs and business reports on the subject, culled from the intern et, will reveal in the resulting research project.   As we seek to devise an appropriate mode for study, we can note that there is a very clear sociological divide on how parties involved perceive the implications of this music downloading frontier.For music retailers, who to this juncture have offered hard-copy packages of music at ever-growing industry controlled rates and in the medium defined by current industry standards, the sudden transition to a setting where this content could be acquired for free and at a bypass of conventional media and gate-keeping channels was a shocking one for which most were wholly unprepared.   On the opposite end of the spectrum, the independent ability for users to develop digital exchange technology and to compile digitally stored data such as that available on purchased compact discs represented a new and desirable means of obtaining music.In part a direct product of the evolution of information technologies and in part a natural response to a music industry where output was increasingly over-priced and diminishing in artistic quality, consumers have begun not only to expect but to actively claim a new means to acquiring music.   The new digital medium, which compresses songs into computer files called MP3s, has become the commonly accepted medium for music possession amongst consumers.   In contrast, the industry is struggling only now to catch up.   The proposal here will seek to devise a university approach that inherently acknowledges this gap, and attempts to play a mediating role in bringing only presently emerging paid file-sharing programs into contact with student populations.Key terms which will be considered in the proposal are those of ‘file-sharing,’ ‘intellectual property,’ and ‘online piracy.’3. Proposed Program or Plan of WorkIn the current online file-sharing context, everyday university students have essentially become bootleggers, according to legal resear ch and assertion by both the music industry and the United States Congress.   These are sources which appear to favor the music industry institutions, but in actuality, take a narrow perspective that is damaging to compromise for all parties.   The program proposed here will be informed by a desire to overcome this hindrance to cooperation through a carefully constructed mediation whereby the university determines the best possible way to initiate an ability for students to continue to download music for free without sacrificing a relationship to industry and law.Namely, this process of information gathering and research examination will require a consultation with the music industry in particular.  Ã‚   The music trade, represented by the Recording Industry Association of America (RIAA) has insisted that downloading communities are costing the industry millions of dollars in declining sales.   Since the inception of the Napster online music swapping forum in popular culture , there is a broad awareness and exploitation of new and limitless internet resources for the acquisition of free music, with millions of American students logging on everyday to take part in the newly proliferated field of bootlegging.If one is to take the music industry as a case study of the changing nature of commerce with the integration of internet technology, there may be evidence to suggest that the retail approaches traditionally taken by many industries may be subject to extinction.   This is a fact that informs the focus of the study on the best way to court involvement of many music industry players to participate in campus programs designed to streamline downloading opportunities for students.Data gathering will be conducted through a close consultation with such pay sites as Rhapsody and iTunes, which offer users the opportunity to pay either subscription fees or monthly charges.   The University will investigate the potential for partnership with such services, ma king one or multiple downloading sites accessible to students as a part of the university enrollment package.The research process will therefore be structured around a correlation between the apparent downloading practices of students, which can be considered by way of a thorough literature review on current university piracy patterns, and the various terms upon which music industry players are willing to participate in programs which increase user access across university settings.   One expected challenge in this research process is the likelihood that gatekeeper based file downloading programs will not offer a sufficient alternative to many students who already enjoy the benefits of peer to peer trading.   This is an issue which inclines us to enter the proposal with an intent to evaluate and promote the distinct benefits of legal downloading where both options are available to individuals at no cost.4. Qualifications and ExperienceThe process of developing this experimental research process will primarily be based upon the dispatching of university personnel to effectively navigate the marketing aspects which are likely to take a center stage in the resolution of mutually beneficial programs for industry players and students.   Likewise, one who is familiar with the subject of student behaviors in this context will be dispatched to conduct the literature reviewer on habituation.5. BudgetThe cost of the process will be relatively modest, with major resources being limited to those required to conduct research on present behaviors.   It is the proposed ambition here that partnership with many of these services will be directly based upon the presence of agreed-upon sponsorship arrangements in which students are granted unfettered access to programs in exchange for the university’s promotion of service brand names.   Thus, the cost should be no greater than an estimated $10,000 required for the time and personnel used to conduct basic researc h.6. AppendicesThe task schedule will be centered on the start of a new fall semester, with the summer months employed to gain the partnerships needed to implement a trial program for incoming students.Bibliography:Borland, John.   (April 9, 2003).   Music Industry:   Piracy is choking sales.   CNET News. Online at .Garrity, Brian.   (2004).   MP3 Blog sites cause concern.   Billboard Magazine.  McClintock, Pamela.   (March 14, 2004)   Copyright Piracy Draws Anti-Terror Scrutiny.   Washington Variety.Timms, Dominic.   (July 9, 2004).   Online piracy dogs movie industry.   The Guardian.Vargas, Melody.   (2005).   Cyberspace Vs. Parking Mall Space.   About the Retail   Industry.   Online at   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   .

La Grande Odalisque and Olympia: Comparison/Contrast

Two exquisite paintings with a female reclining nude as the focal point are La Grande Odalisque by Jean Auguste Dominique Ingres and Olympia by Édouard Manet. The female nude has been a crucial subject for art throughout history.   The angular curves and the sensuality that can be created with just a form has intrigued artist in the past, present, and future.   While the similarities of these two painting are more evident, there are still contrast between the pieces. Ingres was from France and he painted during the Neoclassical Period, while Manet, who was also from France, painted during the Realism and Impressionistic Periods.   Their live overlapped each other for only thirty years, but their styles belonged to different periods.   Ingres lived through the French Revolution and was very much affected by it although Manet was born after it was over. Seeing such a drastic change in the world in which he lived caused Ingres to pay very close attention to the details of the past.   He wanted to preserve it perfectly and he also looked to the techniques of the masters before him.   Manet was not so much concerned for the past, but his eyes were on the present.   His subjects represent the French societal and cultural setting of the time period in which he lived. La Grande Odalisque by Ingres is an oil painting of a lone nude female reclining on her bed.   Her body faces away from the viewer, while the woman looks back over her shoulder.   There is only a glimpse of her breast under one of her arms and the rounded sides of her buttocks are visible. Olympia by Manet has two females in the oil painting.   One is a black servant woman and the reclining female nude.   Manet depicted his nude facing the viewer.   Her breasts are completely exposed and her genitals are covered by her hand. There is a tropical feel in Manet’s painting  Ã‚   Even though she has covered part of herself, this female seems more open with her nudity and the female in Ingres’ painting is more subtle and alluring with her body. Ingres uses muted shades of green jewel tones to create an elegant effect.   Manet also incorporates the color green, but he emphasizes the stark white which allows the female to stand out.   The white also gives a harshness to the painting.   It is as if someone turned on a bright overhead light in the middle of a sensual moment.   The model in Ingres’ painting tends to blend with her surroundings. Both females hold something with her hand, but Ingres’ female’s fan is one of peacock feathers which blends in with the rich tones of the background.   At the barefoot of Ingres’ nude, there is a pipe and green stool, while there is a black cat at the high healed feet of Manet’s.   Manet’s figure wears an orchid in her hair as well as the shoes.   She finds no modesty with the observation of her servant’s stare and is completely open with her sexuality. The female nude is the predominate subject of both paintings but the differences reflect their artist and there artistic periods.   While they are both alluring, they are also starkly contrasted.   Manet and Ingres were definitely masters of their times, and the La Grande Odalisque and Olympia are examples of both of their best work.   Both of these works are alluring and sensual paintings that will mystify viewers as long as the two works exist.

Equality, Diversity and Inclusion Essay

Diversity – The differences between individuals in society, differences could stem from ethnicity, gender, sexuality, disabilities and appearance. Equality – Each individual having the same opportunities to achieve and experience life to the same standard as other individuals Inclusion – The process of identifying differences and barriers in individuals and working towards adapting activities or experiences to enable the individual to participate Discrimination – Treating someone less favourably than other individuals because of differences such as; ethnicity, gender, sexuality, disabilities and appearance Participation – Enabling all individuals to join in and experience activities to their highest capability According to the ‘Every Child Matters’ government publication there are 5 outcomes that can directly link to the importance of equality, diversity and inclusion and how they can be achieved; †¢Being Healthy – ‘so that they are physically, mentally, emotionally and sexually healthy, have healthy lifestyles and choose not to take illegal drugs’. A child or young person who has been enabled to participate and be included among others is more likely to develop well emotionally, physically and mentally †¢Staying safe – ‘from maltreatment, neglect, violence, sexual exploitation, accidental injury and death, bullying and discrimination, crime and anti-social behaviour in and out of school, have security and stability and are cared for’ A child or young person who has been educated from an early age about different cultures and backgrounds will be less likely to grow up to discriminate, bully or show anti-social behaviour to people of different cultures and backgrounds †¢Enjoying and achieving – ‘so that they are ready for school, attend and enjoy school, achieve stretching national educational standards at primary and secondary school, achieve personal and social development and enjoy recreation’ A child or young person who has gone through their school life being discriminated against may not achieve personal and social development resulting in them not achieving the grades they need to go on to further education, employment and not being able to successfully deal with significant life changes in later life. †¢Making a positive contribution – ‘so that they engage in decision-making, support their community and environment, engage in law-abiding and positive behaviour in and out of school, develop positive relationships, choose not to bully and discriminate, develop self-confidence, successfully deal with significant life changes and challenges and develop enterprising behaviour’ A child or young person who has not been educated well about diversity and has grown up discriminating and being prejudice against others are less likely to grown up to be law-abiding and show positive behaviour or build positive relationships. †¢Achieving economic well-being – ‘so that they engage in further education, employment or training on leaving school, are ready for employment, live in decent homes and sustainable communities, have  access to transport and material goods, live in households free from low income’ Again, if a child or young person has been discriminated against at school they may not finish their education and not go on to achieve the grades they need to go on to further education or employment. SHC 33 – 1.2 Discrimination on an individual can cause them to lose their potential in society and not develop fully in their abilities, talents and education. In later life they may not be able to make a full contribution to society. It will affect friends and family by making them not feel welcome for example; in child care settings, schools or employment settings. Those who inflict discrimination on others may go on to have a false and distorted outlook on life; they may also go on to not be law-abiding as they grow up as discrimination itself is against the law. SHC 33 – 2.1/CYP 3.7 – 2.1 There are legislations and codes of practise that relate to equality, diversity and discrimination such as: Every Child Matters – is a government initiative for England and Wales. It was set up partly in response to the  death of Victoria Climbià © to ensure that children, no matter what background or circumstance they come from will be supported to; †¢Stay safe †¢Be healthy †¢Enjoy and Achieve †¢To achieve economic wellbeing †¢To then go on to provide a positive contribution to their community` UN convention on the Rights of the Children – in 1989 world leaders officially agreed that children under the age of 18 should have the right to †¢An education – children have the right to free primary and secondary school educations. Discipline in schools must respect the child’s human dignity †¢To be healthy – the government must provide good quality health care, clean environments, clean water and nutritious food. Rich countries must help poorer countries to achieve this also †¢Knowledge of information and rights – All children should be able to access reliable information from the media that they will understand. The government must also make rights of children known to adults and children. †¢To live without discrimination – the convention applies to every child no matter what ethnicity, gender, religion and abilities they have. The convention also gives children the freedom of speech and thoughts of their own SHC 33 à ¢â‚¬â€œ 3.3 Discrimination should be challenged when we encounter it. If adults or children behave in discriminatory ways in the setting, there should be strategies to carefully challenge what has been said or done. It is important to support anyone who has been discriminated against however, it is also important to support anyone who is behaving or speaking in a discriminatory way. So that hopefully they will change their behaviour for the future. It is important to challenge discrimination in a way that promotes change. Children are easily influenced by the adult world around them and can pick up prejudiced views and even behave in discriminatory ways. Settings should be celebrating our differences, abilities, ethnicities and cultures so children and parents can see them in a positive way. This could be done by implementing celebration boards, having dressing up clothes from different cultures, having books about different cultures/abilities/religions. CYP 3.7 – 1.1, 3.1 There are many social, economic and cultural factors that can impact on the lives of children and young people. Children and young people who are in care may suffer educationally e.g if a child or young person has recently been fostered or adopted there may be a lot for them to deal with emotionally especially in cases where abuse has been involved. Poverty can affect the mental and physical health of children and the parents as the income may not be enough to provide for the family as CYP 3.7 – 1.1, 3.1 – continued hoped and accommodation may be poor e.g. may have damp which can cause health problems. Living in a community amongst others with anti-social behaviour can isolate some families making parents reluctant to let children play out and socialise with others. Rural communities can also get isolated from others due to being far away from educational and health facilities with limited transport. A parent or child who has a disability could have their educational development greatly affected. A child with a disability could miss a lot of school due to illness or hospitalisation; this could also affect their social and emotional development due to missing out on communicating with peers in educational and every day environments. A child whose parent has a disability may be a carer to their parent and miss out on every day activities and communication with children their own age. Bereavements in families can affect the emotional and physical health of children and their parents e.g. if a parent loses a child it could have a knock on effect on the remaining children, seeing a parent finding it difficult to cope with the loss could make it even more difficult for the remaining children to come to terms with the loss. Different cultures can affect children and young people e.g. families that live in a way that varies from the norm; same sex couples may be discriminated against by  anti-social individuals, which can affect the family as a whole emotionally and socially. Children from travelling families can have their educational development affected if they change schools often. CYP 3.7 – 1.2 The income of parents can determine the outcome of children’s prospects of life choices and good health. Income affects the different types of areas in which children are brought up e.g. inner-city/suburban/rural, the quality of housing and the quality of food provided. †¢Infant mortality rates are highest in families that earn the lowest incomes †¢The chances of poor health in later life are greater †¢Child accident rates are more than twice as higher †¢Statistically, children from lower income families are likely to have poorer health than those from higher income families, often resulting from poor housing conditions, poor quality food, stress or depression †¢Young adults may have less chance of employment in the future resulting from low achievement in education †¢Children from lower income families are more likely to be involved in crime later on in life †¢At school children are less likely to achieve to their full potential

Myths of death, after life & eschatology Essay Example | Topics and Well Written Essays - 500 words

Myths of death, after life & eschatology - Essay Example ‘Ngai’ is the name of the most High God in Kikuyu. This worship does not establish a connection with ancestral spirits. The Kikuyu have always believed in one God whom they have always regarded as creator and provider of all things, he who lives in the sky and temporal homes on earth and designated as mountains which serve as his resting place when he visits the Kikuyu people supposedly to lay his curse or confer his blessings to the people. (Mircea) Drawing from many African cultures, the Kikuyu believe in existence and life after death. Therefore when a person threatens to die, the community call upon the Ngai, and so it is believed widely among this community that it is only Ngai who decides whoever dies. At every occasion in kikuyu, including birth, marriage, initiation and death a prayer communication is established then between the victim and Ngai. Other studies have suggested that these four events in Kikuyu bear a lot of significance in Kikuyu culture, and as such during other normal happy times no such prayers are offered nor religious ceremonies conducted. Kikuyu believe in afterlife. Subsequently, it is also argued that the ancestors exist in the community’s descendants. Therefore it is a common cultural practice that children are then named after their grandparents, this assumes that once an someone has been named after an ancestor, then the ancestor exists with these people in their everyday activities, and also other consequences are experienced when naming of an ancestor has been forgotten and thus appears in manners that are not pleasantry. (Mircea) Mircea further says that besides believing in death, Kikuyus also believe in the existence of their ancestors, there are several cultural undertakings that they practice in order to appease the ancestors especially if ancestors have been ignored. In most occasions, they pour beer on the ground or food in attempts to appease the ancestors, practices that

Jetpropulsion Essay Example | Topics and Well Written Essays - 1000 words

Jetpropulsion - Essay Example problem that was created by the Hurricane Katrina, it is important for the supply Chain Manager to have a comprehensive plan having studied and known the details concerning seasons and the environment in which the Hurricane was expected. The problem can solved using various methods that are recommended in the supply chain management field. Using the required measure ensures that the Chain store does not run out of stock even in the time of need in response to the disaster. However, there are measures that may be used to achieve and maintain the flow of business as usual, these include the make to order strategy, make to stock, and assemble to order in that sequence. Both the strategies are useful to the supply chain but not all are effective. In the stores, in this case, it is the supply chain that needs a lot for distribution and also need to take more to consumers. Therefore, make to order strategy is more effective in comparison to other strategies. In relation to location of the store or warehouse, the determinant factor is the availability of consumers. There are some questions that the supplies management ought to ask themselves, for examples, who are our customers? What do they need? How far is the distance from the store to the manufacturing point? These questions will help in the understanding of some critical issues that may lead to lose of cash through bigger expenditures on transport and other useful activities. However, location sometimes may be not a problem depending on the product or services that are being produced or distributed to consumers. The rise of technology has enabled the world to be like a one market place. In the chain supply, the inventories are more important to the business. They help with checking and keeping the records. The records help the managers to check whether they are making profit or loss. It also helps in knowing rate of output and analyzing the progress of the business. The inventory not only help the chain supply

How the deficits of the 1980's contributed to the prosperity of the Term Paper

How the deficits of the 1980's contributed to the prosperity of the 1990's - Term Paper Example These are: (1) to reduce the growth of government spending, (2) to reduce the marginal tax rates on income from both labor and capital, (3) to reduce regulation, and (4) to reduce inflation by controlling the growth of the money supply† (Niskanen, â€Å"Encyclopedia†). These changes reduced taxes for most wage earners, and most of the poor were actually exempted from taxes. Reagan also eliminated price controls on oil and natural gas, long distance telephone service, and ocean shipping. As reported by the Joint Economic Committee in April of 2000, Reagan’s polices resulted in the largest peacetime economic boom in American history. It also resulted to 35 million jobs for many Americans. The committee reports, â€Å"[i]n 1981, newly elected President Ronald Reagan refocused fiscal policy on the long run†¦these were fundamental changes that proved the foundation for the Great Expansion that began in December 1982† (Sperry, â€Å"Issues†). At the b eginning of the 1990s when Reagan’s tax rate cuts were set in place, tax payers who earned more were taxed more, and those who earned less were taxed less. This gave a chance for those in the lower rungs of the economic ladder to recover from their difficult economic situation. The reductions in income tax for those who had lower income were so dramatic because President Reagan doubled the personal exemption; he also increased the standard deduction, and he tripled the earned income tax credit. Earned income tax credit gave net cash to single-parent families with children at the lowest income levels. Reagan’s economic policies practically took from the rich and took less from the poor, and this gave the lower income group in American society a chance to recover and improve their lives. The eventual manifestations of improved life were later seen in the 1990s. The stimulants for growth in the 1990s can be traced back to the economic measures and policies which were implemented during the

Investment and Portfolio Managment Essay Example | Topics and Well Written Essays - 5250 words

Investment and Portfolio Managment - Essay Example Investors must take account of the interplay between asset returns when evaluating the risk of portfolio at a most basic level; for example, an insurance contract serves to reduce risk by providing a large payoff when another part of the portfolio is faring poorly. A fire insurance policy pays off when another asset in the portfolio-a house or factory, for example-suffers a big loss in value. The offsetting pattern of returns on these two assets (the house and the insurance policy) stabilizes the risk of the overall portfolio. Investing in an asset with a payoff pattern that offsets exposure to a particular source of risk is called hedging. Anther means to control portfolio risk is diversification, whereby investments are made in a wide variety of assets so that exposure to the risk of any particular security is limited. By placing one's eggs in many baskets, overall portfolio risk actually may be less than the risk of any component security considered in isolation. So, using portfolio is very much important in investment decision-making Prof Stein should protect the value of his shares before the company issues an IPO by using derivative products such as options, forwards and futures. Derivative products help to avoid risk of price fluctuations and others. In hedging, Derivatives are tools for changing the firm's risk exposure. A derivative is a financial instrument whose payoffs and values is derived from, or depends on, something else. For example, an option is a derivative. The value of a call option depends on the value of the underlying stock on which it is written. Actually; call options are quite complicated examples of derivatives. The vast majority of derivatives are simpler than call options. Most derivatives are forward or futures agreements or what are called swaps. An unlimited variety of payoff patterns can be achieved by combining puts and calls with various exercise prices. Some strategies are discussed below: Protective Put: Under this one would like to invest in a stick, but one is willing to bear potential losses beyond some given level of investing in the stock alone seems risky to one because in principle one could lose all the money one invest. One might

College Scholarship Essay Example | Topics and Well Written Essays - 500 words

College Scholarship - Essay Example For accommodation, each of us was assigned a room with a roommate when we were registering to join the program. In my case, my roommate was Asha, who came from a Muslim background. In my life, I had never ever interacted with Muslims since I had been raised in a staunch Christian home. I would hear of people saying that other religions had different ways of doing things, but I had no first-hand experience with then anyway. My experience with Asha was great though I came to learn and understand some beliefs that I can call ‘weird’ to me somehow. On the first day, since she was the only friend whom I had interacted with, I spent most of my evening with her. The first thing, which amazed me, was that she had to wash her feet before praying. Additionally, she had to recite a number of verses from the Quran (Henningfeld, 2010). With my curiosity, I asked her why she had to do, and she responded by telling me that their religion required them to do so. Further, she told me that they were supposed to pray at specific time where they had different prayer versions for different times of the day. This was totally opposite from what I practiced in Christianity. In my religion, one can pray at any time regardless of whether they are clean or dirty. My curiosity never ended there; Asha had a distinctive way of dressing. According to their religion, a woman is supposed to cover her hair all the time. Sometimes it could be extremely hot, and I would her why she could not remove some clothes. However, one thing, which I really liked with the Muslim community during the exchange program, is that they were very united in different activities. They dined together as they shared their daily experiences with other students from different states in the country. They also have a specific time of praying, unlike the Christian community which never united as some were protestants while others where Roman Catholics.

Marketing, target market report Essay Example | Topics and Well Written Essays - 1000 words

Marketing, target market report - Essay Example The segmentation theory is a part of economics that relates to the yield curve of a finance sector. In other words, they cannot replace each other in any form. This creates a specific amount of investors for both the long and short tem markets. The result of this affects the interest rates in a market. The long and short term supply is both adversely affected (Mishkin & Eakins). Thus, each of these markets is functioned and is determined at an independent level. Another aspect of this is the reliability it places on short term investments. Each investor has a fixed maturity preference. Because of the investors' preference over the liquidity of their stock, they prefer to choose the short-term investments that determine them. This creates a greater demand for short term investments in the market. The geographic segmentation of an item is essential in the market. Not only does it determine the identical trends within a group of international markets but it also identifies the factors the influence their buying trends. The Xbox 360 is an object that created a great deal of excitement and fervor in Australia. With a website of its own, it was the ideal location for sale amongst the varied age groups in this country. This is evident in the company opening up a website created specially for this continent (Xbox.com). This website is dedicated solely to the markets in Australia. It controls and harnesses the consumers who are interested in buying the product within this region. This country is still part of the British Commonwealth which induces many of its facets and tastes to run according to the British market. It is for this reason that the Xbox 360 owners considered it an essential market in their grid. With a high economy, literate population and number of buyers, Australia was the perfect geographical segment for this product to launch itself. Demographic Traits According to the demographic segmentation, the division of the population is vital for catering to a specific market of consumers. Australia commands an exact population of 21,895,808 people according to the Australian Bureau of Statistics. This is a huge audience for the Xbox 360 to cater to which makes it evident why the brand has moved here. Also, the age structure of this population has made it vital for this gaming console to enter this market. With a population of around 70% of individuals falling under the age bracket of fifteen to sixty, this Xbox played a winning move by moving into this crucial market (Year Book Australia). This gaming console is perfect for individuals who fall under the age of those apt at buying and using this product. The Xbox 360 is a game that is a chosen preference for the male population. With an equal division of males and females in Australia it is profitable for the console to enter this market. The economy of Australia is also sufficient enough for its individuals to afford to buy this product. This makes it the perfect demographic market for the Xbox 360. Psychographic Traits The psychographic traits of Australia assist

Nuclear Energy Essay Example for Free

Nuclear Energy Essay There are many advantages and disadvantages of using nuclear power. Nuclear power is said to prevent power outages that happen in areas without nuclear power. For an example, if we were using hydroelectricity and the dam suddenly malfunctions, then we won’t have electricity until someone fixes the dam, and that would be difficult if it happened in the middle of the night. However, on the other hand, nuclear power is also considered toxic and it pollutes the Earth with harmful and deadly waste. Here are a few reasons why we should and should not use nuclear power. One of the reasons why we should use nuclear power is that it doesn’t pollute like coal and other fossil fuels. Scientists have said that using nuclear power is used to power electricity in most homes. They have also been saying that nuclear power tend to work better than using fossil fuels, gas power, and hydroelectric power. Since scientists are saying it works better, than we can use more nuclear power than using fossil fuels, gas power, and hydroelectric power. Another reason why we should use nuclear power is that scientists have said that it is possible to generate a high amount of electrical energy in one single nuclear power plant unlike coal, gas, hydroelectric power plants since they need a few to power electricity. This is important because it costs more to build a nuclear power plant than to build a coal, gas, or hydroelectric power plant. That way, we can save money by building one nuclear power plant instead of a few coal, gas, or hydro electric power plants. One more reason why we should use nuclear power is that scientists have been saying that the affect of global warming because of nuclear has been relatively little compared to coal, gas, and hydroelectric power. If we keep using nuclear power for electricity and other good uses, then there would be less global warming, but if we start to use more and more fossil fuels, then global warming will keep increasing in the future, so to prevent this, we can use nuclear energy. One of the reasons why we should not use nuclear power is that nuclear power is that nuclear energy releases radiation such as alpha, beta, and gamma radiation. Alpha particles can cause skin injuries similar to severe burns, beta particles can travel into the body and damage cells, and finally, gamma rays can deliver intense energy to the cells and cause severe damage. Radiation  from nuclear energy can wipe out the human generation, since mutation usually occurs when a person is affected by radiation. In order to prevent this from happening, we shouldn’t take chances and use nuclear energy. Another reason why we shouldn’t use nuclear power is because it takes many years for it to decay. Unlike coal, gas, and hydroelectric power, once you use it, it is not done. After a point where it has no more nuclear power, there are still radioactive waves in it that will still damage your cells. After the half-life of the radioactive element occurs, which could take a long time , only half of it has decayed. Nuclear energy can help, but later on we would have to dispose the nuclear waste to decay in a remote location. If we need remote locations to dispose nuclear waste, then one day we would run out of those areas, and possibly half of the world will be not be accessible to humans due to nuclear waste occupying the areas. One more reason why we shouldn’t use nuclear power is that one of the types of nuclear energy, nuclear fission produces high amounts of nuclear waste. Scientists have been saying that if we use nuclear energy, then we should be disposed off at a safe place since they are extremely hazardous and can leak radiation if not stored properly. If the wastes somehow get into the freshwater and saltwater systems, then all the sea animals will get affected, and we won’t be able to drink the water from the freshwater. Another type of nuclear energy, nuclear fusion doesn’t produce any nuclear waste unlike nuclear fission, but it is really hard to make, so since it is hard to make, it won’t be helpful for everyday electricity. In conclusion, there are many advantages and disadvantages against nuclear energy, but I think that as long as we keep the nuclear power plant is in a remote location where no one can go and get affected, we can use nuclear energy. When the nucle ar waste is produced, then we can dispose it off at a safe place since it’s extremely hazardous and can leak radiation if not stored properly. If we are going to use nuclear energy, then we should handle it carefully even if it is for electricity because if it is misused, then people who are affected by the radiation from the energy will have mutations or possibly even die.

Effects of Public and Private Monopolies on Consumer

Effects of Public and Private Monopolies on Consumer Public and private monopolies what are the positive and negative effects on the consumer An economy comprises of a large collection of firms and consumers that operate on the basis of market mechanisms known as supply and demand. These are used by firms to determine the level of production, the output required to meet consumption, the price as well as the consumption level. From a microeconomic point of view, markets that exist within the economy are governed by these mechanisms but in actuality this is not the case. Inconsistencies do occur in markets due to competition and firms within the markets tendency to earn more profits. Power to over produce and earn more profits comes from successful firms that attain equilibrium in the market or through mergers and acquisitions. As a result of horizontal integration (in which two or more firms join hands to produce in one industry) and vertical integration (firm develops market dominance by integrating indifferent stages of production) a market tends to develop monopolies(Tutor2u.com 2004). In such a market firms aim to generate higher profitability by increasing market share and by exploiting economies of scale. Competition in the market therefore is reduced as the result of firms growing through internal expansion. This kind of tactics according to economists harms the interests of the industry as well as the consumers which eventually lead to economic instability. To curb this, the government often adopt regulations to prevent monopolies from having an advantage over the existing or new firms and exploiting the consumers interests. Why monopolies are discouraged is because their tendencies to earn higher profits at the cost of allocate efficiency (Tutor2u.com2004). A monopolist would set the price of the product or service high to exploit the consumers needs and wants without satisfying incompletely. Consumer sovereignty thus is replaced by producer sovereignty (Tutor2u.com 2004). This turnaround from consumer sovereignty to producer sovereignty stems from the basic economic principles of economic welfare. Welfare refers to the best use of scarce resources in an economy. This means that welfare is about maximization of resources with optimum outcome(referred to as economic efficiency). Maximization means the firm needs to achieve: a. allocate efficiency resources being allocated to the activities where they are most valued; and b. productive efficiency resources being used in the most effective way possible (Coopers Lybrand 1996). Welfare economy is based on the free market concept with the assumptions that certain conditions are fulfilled. These conditions include large number of producers and consumers; it does not take into account of income distribution or equity considerations; there is perfect competition; and economic efficiency is achieved. Monopolies are also based on the economic models of competitive market and principles which include demand curves (D), supply curves (S), average cost curves (AC), marginal cost curves (MC) and marginal revenue curves(MR) (Coopers Lybrand 1996). Term definitions Demand curve refers to the demand by the consumers and the price they are willing or able to pay for the products. This is in turn governed by the budget constraints, relative prices, preferences and income. What the consumer is willing to pay and what is the actual price are different and the difference between the two is called consumer surplus. Supply curve illustrates the volume the producers are willing to supply at a given price. There is a difference between the actual price and the price at which the producer is willing to supply the products. Thesis known as producer surplus. Marginal cost refers to the cost for producing each additional unit of output. Marginal revenue curve show the total revenue earned by producers through a change in price and output demanded (Coopers Lybrand1996). Given the above constraints and principles, the researcher illustrates the condition of competitive market through the following model and leads the readers to the condition for monopolies. In a perfectly competitive market it is assumed that there are a large number of informed buyers and sellers. The producers are the price takers while the market price is governed by the supply and demand mechanisms. It is further assumed that should any seller tries to raise the price the consumer would switch to another supplier and hence the condition of the profit maximizing firm is such that it would attempt to increase output to attain equilibrium through marginal cost and market price. This would allow the producer to earn maximum profit, incur constant average cost and no fixed cost. This condition is denoted by AC=MC (as shown in the figure). In the above diagram one observes that the consumer surplus is the consumer’s ability to pay more indicated by the shaded area while there is no producer surplus. This means welfare maximization has been achieved. Even when the price is increased from P to P1 the output level would fall from O to O1, the consumer may not be willing to buy the product even if he/she has the money to do so. Alternatively, if the price is decreased from P to P2, below the MC then the level output would rise because the consumer is willing to buy more of the product at a lesser price. Hence, under perfect competition: the price is equal to the marginal costs Producers earn a normal profit (zero producer surplus); and economic welfare is maximised, so the outcome is economically efficient (Coopers Lybrand 1996). However, in the real world market condition and competition is far from perfect and this model of perfect competition is often marred by other kinds of unfair competition including m onopolies. In the classic case of the monopoly there is only one producer who is the price setter and the consumer is the price taker. The producer would maximize profit by setting the level of MR = MC and a price that the consumer will bear. In the following figure one observes that when the producer produce low level of output the MC is below the MR. What this tactic does is that it lets the producer to control the profit by increasing output while the price is set by the demand curve. Hence in a monopoly there is: - a lower level of output (O compared with O1); A higher price (P compared with P1); Profits in excess of those required to earn a reasonable return (ABDE is monopoly profit or producer surplus); and a reduction in economic welfare; the loss of consumer surplus -resulting from higher prices is ABCE, which is more than the benefit tithe producers in terms of higher profits (ABDE); this net loss, represented by the triangle BCD, is called dead-weight loss (Coopers Lybrand 1996). With this background monopoly can be defined as: A monopoly is a large, single supplier that dominates an industry(Cleaver 2002). A single producer dominates the market by setting the price and gains high profits through producer surplus at the cost of consumer surplus. A monopoly therefore compromises the economic welfare. A monopoly can further be categorized as private or public monopolies. Private monopolies can make huge profits by charging higher prices than a compet itive firm could demand for this reason they tend to be either outlawed in market societies or taken over byte state. Public monopolies are common, intending to provide public services (e.g. postal services transport, etc.) at low cost. The lack of competition for such giants, however, whether privately or publicly owned, tends to breed inefficiency: there is no incentive to serve the public well, since consumers have no other choice of producer to buy from. (Cleaver 2002). Problem Statement Given the above brief explanation of monopolies and the consumer’s position in the competitive market, one understands that economic theory form the basis for comprehending the structure of real markets, it does not actually present a realistic picture. A framework such as the above would guide the policy-makers in regulating the monopolists and establishing pricing policies but would it maximize consumer economic welfare? What are the effects on other firms? What impact do they have on the policies and the business environment? More importantly, how the differences between public and private monopolies affect these consumers? These are some of the aspects that the researcher aims to investigate in the following sections using the above framework as a guide. Methodology To illustrate the above problem statement the researcher adopts the qualitative method to carry out the research. This entails the use of secondary resources as well as primary resources. In the next section the researcher reviews secondary literature including magazines, newspapers, websites and educational institution material. To enforce the concept of public and private monopolies the researcher also takes into account of primary resources such as journal articles, books and official publications. The purpose of combining primary and secondary resources is to ensure that the researcher has based the analysis on both the theoretical and real life situation. To illustrate true life situation the researcher has also adopted the case study method. Case studies of Royal Mail and Microsoft have been included to represent public and private monopolies respectively. The cases would help the researcher and readers to understand why monopolies behave the way they do, and how they affect consumers as well as industry to which the firms belong. By combining both the qualitative and case studies the researcher aims to analyse and come to conclusive views of how monopolies operate, its negative and positive effects on consumers and what impact do they have on the business environment. Discussion Public monopolies In an economy there are public as well as private firms. The public and private nature of firms keeps a balance of private and public consumption. The rationale is that some goods and services are required by the public but they are not willing to pay for its welfare maximization. These goods and services are demanded by the people but nobody is willing to pay the price for its supplies. For this reason the government takes upon itself to create firms, either through deregulation or setting up independently, with the purpose to provide these public goods and services to the public. With the high demand in todays global market for higher efficiency and effective allocation of resources, many economies are opting for privatization of firms. Many consider privatization as more efficient even for public sector organizations. In the majority of countries, public utilities like electricity, gas, water and postal services remain in the control of the government. However, it must be noted that most of these utilities providing companies are running at a loss and cost of the government as there are only few people who are willing to pay for the goods and services provided. According to Edwin West (1982)Once in operation it is very difficult to stop individuals tuning into obtain its benefits free of charge. This creates the now familiar â€Å"free rider† dilemma, in which nobody will produce the good because nobody is willing to pay sufficiently to cover the costs. Since there is no value or profit involved, the government becomes the undisputed provider and therefore attains the role of the monopolist. In a public monopoly from an economic point of view there is only one seller in the market. Whatever profit, if any, acquired through the operation of the public monopoly belongs to the seller, in which case it is the government or the state. Public organization is owned by the government and often requires a lot of resources for its operations. Investments from taxes and the government budget provide for the required funding to operate these public entities. It may or may not operate for profit and hence a fixed profit is not expected from government owned firm. The public sector organization becomes the undisputed seller in the industry because it runs through state subsidy and can afford to operate at a lesser or zero price. For private enterprise to compete with this structure is highly difficult especially at an operating loss. This is illustrated as follows: In a state owned scenario the competitive market price is set at MC of dissemination and ED becomes the supply curve (S). Since this price is so low there is high demand for it. In some cases such as the Royal Mail there is a constant demand or outcome which does not get affected whether the price is low or high as postal services are required by the public regardless. However, as the producer is operating at a low price that means the cost of dissemination is high and the producer is operating at a loss. The overall result is welfare loss due to the fact that the producer surplus is less than the consumer surplus which equates to producer low surplus. In the following diagram one observe that the area ABDE is the consumer surplus which is basically a loss while the area ACDE is the producer surplus which is negated by the consumer loss. The net welfare BCD is less than the loss incurred on the consumer. Even when the government subsides and allocates more resources it would generate sub-optimal resource efficiency and thereby low social welfare. Government owned organizations such as the Royal Mail often require injection of investments by increasing the subsidies with the hope to increase the social benefit and welfare of the consumer. However, the external benefits may increase for a certain period only and relapse in the long run (see figure 6.3) (Coopers Lybrand1996). This has been the case of Royal Mail in the United Kingdom. The history of Royal Mail can be traced to the period of provocation in1979 in the UK. Most of the UK enterprises had been public enterprises and the government had taken extensive steps to privatize these enterprises with the view to reduce states expenditure and to shift the burden cost to the private sector. As a result 7.2 present of the public owned enterprise reduced to 2 present (Cook 2005). Despite the size of the program some of the government organizations remain within the domain of public sector. During the 1980s under the Labour Government this process reversed and as a result most of the industries became nationalized including the steel, automotive, shipbuilding, aircraft and postal industries. Most of the policy makers favoured the public owned enterprise due to several reasons. Firstly, it accounted for a larger share of the national total output and employment share. Most of these organizations are large and required a large number of workers to support its infrastructure. Since the Labour Government favoured labour intensive organizations, through public ownership it ensured job security for the majority of the population (Cook 2005). Secondly public monopolies such as the mail, airline or the steel industry have been essential services for the country that only the government can subsidize and finance. The massive infrastructure required for their operations made them unattractive to investors. For example the education system, legal framework as well as defence system. These were essential to the public but no single investor would be interested in investing huge funds with bleak future of running at aloes. Only the government with its access to huge funding was willing to invest in such public enterprises. Thirdly, organizations belonging to the public sector may enjoy the monopolist status yet not become regulated due to the government’s backing. As a result the resources allocated for its operations secured public welfare. Fourthly, public sector organizations worked in the interests of the consumer regardless of its inefficient status or costly structure. They were accountable to the electorate and not to a group of shareholders alone making them exclusive for a large group of consumers (Cook 2005).As a result of the deregulation, the UK government had been able to secure quite a few public monopolies. It has been observed that most public monopolies are redundant and donor serve the purpose of the consumer as efficiently as the government perceive. Compared with the benefits they provide to the consumers, public monopolies are not as efficient in delivering what they promise to the consumers. Due to the slow innovation and dynamic nature of these enterprises, the result is that they do not change with the consumer need. Poor quality is inherent in the kind of service they provide due to mismanagement and lack of training in the organizations. Other factors that lead to poor quality include incompetence, irresponsibility and the lack of accountability to specific authority (Saves 2000). Since there is no competition in the industry to give public monopolies wake up call and motivating them to innovate to serve the consumer welfare the public enterprises continue to provide services that may not serve the welfare of the consumer fully. For example the need for postal service in this day and age of technological development has decreased significantly (even though parcel services are still required). Public sector enterprises tend to lead to inefficiency due to the vast management and personnel structure. According to E. S. Saves (2000)government performance are reflected in these public enterprises in terms of inefficiency, overstaffing and low productivity. These organizations tend to employ twice as many employees per customer so that the resources become a waste which could easily be allocated to another entity where they are required. Although the government regularly inject investments for appropriating incentives through pay and rewards yet the distributed amount is so less to the individual worker that they remain unsatisfied working at the public organization leading to low productivity and inefficiency. Secondly, one of the biggest complains is that the publicly owned organizations do not have a choice in the products and services they get due to the lack of variety and choice. Due to the monopolistic behaviour, public enterprises tend to lack innovation to diversify resources or products to attract the consumers. As a result the consumers are forced to purchase products that they may not prefer, thereby stifling consumer preference. Thirdly, it has been observed that most public monopolies require huge investment funds at the cost of the taxpayers and the government. Indirectly, the consumer is forced to pay a price for services or products that they may or may not want to utilize. Fourthly, the public monopolists are not accountable to any one in particular but to a body of electorate that may be influenced by political entities. Hence, if there is a Labour government then the public enterprise would get more subsidies to increase its performance and thereby serve the public welfare more. However, on the other hand if there is a Conservative government then the enterprises would get fewer subsidies, decreasing its resources and efficiency. As a result there are fewer benefits to the public despite the high price they pay through taxation and allocated cost. Public policy in the past has been concentrating on the privatization of enterprise due to several reasons. Saves (2000) notes Some state enterprises are not expected to break even or make money, but many are. Nevertheless, loss-making and debt-ridden government enterprises tend to be the rule rather than the exception even among the for-profit group, and this is the principal impetus behind the worldwide movement to privatize such entities. The underlying reason for this state of affairs is the lack of true financial accountability. That is, government agencies and GOEs are rarely subject to binding budget constraints; they can usually muster enough political pressure to extract more subsidies. Furthermore, public enterprises have less inclination towards improvements despite the high level of investments. According to Akira Nishimori and Hikaru Ogawa (2002) First, suppression of the monopoly rents and improvements in allocate efficiency: admitting private firms into a market brings about increased output and lower prices. Second, a higher level of productive efficiency in the public sector; cost reducing incentives will emerge in the public sectors service production when it faces private competitors. They describe the public monopoly situation as follows. A two-stage optimization situation for a public firm is taken as an example. The cost reduction choice of investment is the first stage and the quantity supplied to the consumer is the second stage. When the monopoly equilibrium is achieved, maximization diminishes with the increase in investment in the short term. In the long run therefore the public welfare is decreased as the price continues to increase yet welfare maximization is decreased with high costs. (Nishimori and Ogawa 2002). Not only this but the authors also are of the opinion that in a public monopoly private firms that attempt to enter the industry would remain unsuccessful because public firms undertake cost reduction investment in the face of emerging private competition. When a private firm enters the market, there is a decrease in the consumer welfare. For this reason they propose that in order to prevent decrease in the cost reducing incentive of public firm, subsidization policies such arid subsidies may be effective. (Nishimori and Ogawa 2002). Neoclassical economists are of the view that efficiency is inherent in competitive environment. Unlike public monopolies which do not breed competition, privatization thrives in competitive markets as it attracts more investments. Nigel M. Healey (1993) writes The allocate and X-efficiency gains from increasing competition are illustrated by a movement from north to south; that is, from monopoly towards more competitive markets. By combining the capital market and competition arguments, and accepting the notion that private capital markets are beneficial for economic performance, it appears that the largest efficiency gains can be expected where there is an ownership change which leads to both more competition and more reliance on private capital markets. Public monopolies therefore are not open to competition which is the reason why they tend to decrease inefficiency as competition rises. In the UK firms like National Freight Corporation, British Telecom and Royal Mail all tend to have decreasing market share when they are faced with private competition. Royal Mail is the classic case of monopoly which has been dominating the postal industry in the UK for decades. According to a market report by Postcomm (2003) the postal industry is dominated by business mail. Twenty eight present of Royal Mails financial income is derived from its top 50 customers while 59 present of its mail volume comprise of commercial mail including utility bills, financial statements, invoices and government mail. The rest 29 present is made up of marketing material. On the other hand private postal services comprise of only 11percent of the market. With 15 years licence Royal Mail has been the dominant postal service provider within the UK for all types of postage and parcel services. The Postal Services 2000 however revised this public monopoly and introduced competition in the market by allowing other companies to compete with Royal Mail. Despite this fact Royal Mail still remains the undisputed king in the postal industry creating barriers to competition. It has an advantage over its competitors because of its universal access to geographical location as well as collects and delivers mail on each working day (Postcomm Report 2003). But more importantly Royal Mail has exemption from VAT, customs privileges and parking and traffic privileges which delineate it from competitors. The company serves in uneconomic and diverse areas which tend to increase its preference among consumers. Though this cost the government but nevertheless it has set a pattern and process of delivery to diversified destination which increases its competitive edge over other potential mail companies (Postcomm Report 2003). As studied theoretically above, Royal Mail proves to be financially inefficient due to its failure to meet financial target. Despite its increase in revenue due to increase in volume sales and price Royal Mail nevertheless does not earn as much as it is required to reach equilibrium. Instead it concentrates on making profits on business accounts; prepared items etc. and lose out on stamped items. As a result the Postcomm authority has increased restrictions on Royal Mail(Postcomm Report 2003). In such a case of public monopoly, one observes that Royal Mail would continue to incur costs of investments and injections for the upkeep of the enterprise. The organization despite restrictions and strict policies has not been able to meet its performance target. But more importantly Royal Mail behaves in the same manner as in the cost dissemination model that the researcher discussed earlier. Despite high prices Royal Mail is operating at a loss due to a variety of reasons including inefficiency, lack of innovation, loss and compromising consumer welfare with its limited services. Private monopolies As opposed to public there are private monopolies which are adopted by private enterprises. Private monopolies deal with the supply side of economics. According to Charles Geist (2000) private monopolies tend to dominate the market as effectively as public monopolies due to the incentives in the form of tax cuts, economic stimulation and increase in the demand of goods and services. As a result, a private monopolist raises the prices of goods and services higher than the market price with the intention to earn higher profits. In the following illustration of private monopoly there is only one producer who influences the price. The producer sets MC=AC and setting the production low where MR=MC. This way there is low level of production which in turn creates high demand. The price set would that that the market will bear and hence the consumer becomes the price taker. In the following figure one see that low output at O would enable the producer to increase the price of the goods to meet the demand B. Since MC is below MR the producer enjoys a high level of profit with low level of output. If he increases his output to O then he/she would lose out on the price set by the market mechanisms supply-demand. As a result the monopolist profits ABDE despite the high demand ABCE. The area BCD is the dead-weight loss which the market will bear as a result of the monopoly (Coopers and Lybrand 1996). Thus, in private monopolies do not actually serve the purpose of satisfying the consumer welfare because it involves: - a lower level of output (O compared with O1); A higher price (P compared with P1); Profits in excess of those required to earn a reasonable return (ABDE is monopoly profit or producer surplus); and a reduction in economic welfare; the loss of consumer surplus -resulting from higher prices is ABCE, which is more than the benefit tithe producers in terms of higher profits (ABDE); this net loss, represented by the triangle BCD, is called dead-weight loss.(Coopers and Lybrand 1996) Sometimes the government such as those under the Reagan’s administration induce private monopolies through privatization policies to get the country out of economic recession. However, according to Bauer et al (1995) The impact of a regulatory system depends upon its influence on managerial behaviour. In the United States, where private monopoly suppliers of electricity, gas and water have existed for many years, the regulatory system has led to confusion, litigation and commercial disaster. The regulations control, inter alia, the level of service, environmental considerations, and pricing, much as in Britain. â€Å"As a result private monopolies tend to affect the consumers and do not really satisfy their needs. Not only has this but it been observed that private monopolies run on the basis of rate of returns on private capital. According to Healey(1993) where a ceiling on the rate of return on capital exists, the incentive for management to control costs is reduced, and an incentive exists to extend the capital base through more investment—the so-called Avert-Johnson effect. This effect compromises the consumer welfare and undermines the enterprise objectives of serving the public. Privatization and the promotion of private monopolies therefore are costly as they need regulatory bodies to monitor them. Yet despite this fact policy makers are of the opinion that to increase firms ‘efficiency, privatization is the most feasible process. As a result private monopoly develops. Horton and Ridge (1972) writes about private monopoly as follows: Private monopoly is also more subject to erosion than governmental monopoly. Competition will make itself felt in one way or another whenever the monopoly price is far above the competitive price. There cent stock-market hearings offer a dramatic example. The commission charged on large purchases and sales is clearly exorbitant. As a result, firms executing such orders have been able to get the business only by agreeing to give up part, often a large part, of their commissions to other firms designated by the customers clearly an indirect form of price-cutting. In addition, a third market has developed in which large traders deal directly, bypassing the organized exchanges. A less dramatic but more pervasive example is competition among firms to provide free services to customers in the form of investment information and advice, attractive lounges with tickers, and so on. Erosion of this sort tends to undermine the management of private organizations and eventually lead to inefficiency which has been the objective of the government for inducing it in the first place. According to Hay and Morris (1991) whenever business activities are monopolistic in nature it involves engineering factors. Engineering here refers to the engineering of management processes and operation of social and economic factors within the enterprise. When the monopolist serve the market at a lower unit cost than other competing firms are unable to match the price or the resources upon which the monopolist is operating. As a result the monopolist creates barriers to entries and drive out competition in the industry. Incentives to efficiency under monopoly prove to be weak as it is cheaper for the market to have two suppliers who are also competitors rather than a single producer. Button the other hand for a monopolist, instead of increasing goods quantity and decrease the price, it would be more profitable to use the same resources to produce related products. One example is the case of Microsoft which has used its technology base to create products that are interconnected and at a high price. As a result the consumer is forced to purchase these products because it is convenient for them to use Microsoft products without having technology clashes (Hay and Morris 1991). Not only this but private monopolies largely lie within the domain of the private sector in which the authority and the accountability lies with the shareholders they serve. The government and policy makers only have authority to the extent of governing it through regulations. The monopolists tend to exist for their own profitability and efficiency as long as its resources are allocated for maximization. Ultimately, it is the market and the consumer which is affected. Private monopolies for example tend to drive competition out of the market due to large consumer ba