Market Regulation Theory

Market Regulation Theory suggests that government policies and regulations shape how markets operate, aiming to promote fairness, efficiency, and stability. It emphasizes that markets tend to naturally fluctuate and can sometimes lead to monopolies, unfair practices, or economic instability. Regulation acts as a guiding framework to prevent abuses, protect consumers, and ensure balanced competition. Essentially, the theory recognizes that well-designed rules and oversight are essential for a healthy economy, helping markets function smoothly while safeguarding public interests.