The Analysis of the Correlation between the Degree of Market Concentration and the Level of Consumer Protection
Author:Ştefania-Cristina Curea, Eduard Dinu and Paul Prisecaru
JEL:C21, L13, L96, G22
DOI:
Keywords:degree of market concentration, level of consumer protection, compulsory civil
liability insurance for car owners, mobile telecommunications
Abstract:
The common aim of legislation in the field of competition and consumer protection is to
ensure the consumers’ sovereignty and well-being.
Based on the analysis of literature in this field we have established, as the main focus of our
research, a study of the correlation between the degree of market concentration and the
level of consumer protection. By using regression analysis applied to data collected from
two sectors of activity, respectively the compulsory civil liability insurance for car owners
and mobile telecommunications, we have shown that there is a direct correlation, meaning
that a high degree of market concentration – which indicates a low competition level, leads
to a decrease in the level of consumer protection.