Flying in the face of the free market
Business Standard, July 30, 2013

By Pradeep S Mehta

The proposal by the Ministry of Civil Aviation to create a cell to keep a watch on airfares and report unusual patterns to the Competition Commission of India (CCI) is anathematical to free market principles. Airlines follow a dynamic pricing strategy of charging passenger fares depending on when a flight is booked or on the simple principle of supply and demand on a particular route at a point of time. Nowhere in the world do governments regulate airfares, but they do expect their competition agencies to take deterrent action against the colluders. The government's role is to promote competition in the marketplace so that players do not exploit the market. More...

Institutions and Economic Transformation
The Broker, July 26, 2013

By Pradeep S Mehta and Bipul Chatterjee

Inclusive growth happens only when people have been empowered and when political and economic institutions play a much greater role in the economy. The issue is not about growth versus equity. It is about growth and equity. Is it possible to achieve both at the same time without one undermining the other? Yes it is, though the relative degree will vary depending on local dynamics, the quality of governance and the political will to address linkages that can result in more equitable outcomes of growth. It is also important to understand that excessive inequality can have an adverse impact on growth prospects and, therefore, both should be addressed concomitantly. More...

Why is business afraid of a more efficient competition law?
Financial Express, July 05, 2013

By Pradeep S Mehta

Traditionally, business opposes any competition law around the world, because they fear that its application will bite into their bottom lines, which is an extremely misplaced fear. Perhaps, they are ignorant of the fact that a competition law actually builds up their balance sheets, as many studies have shown, by making them more efficient and regulating the anti-competitive practices of their competitors, input suppliers and distributors…Any law anywhere in the world is not static and changes are made depending upon the experience that is gained, so what’s wrong with the proposed amendment bill?. More...