Submitted to the Foculty of Groduqte Studies ond Reseorch in portiol ...

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Since prices rose persistentty, there \^rere constont tolks
of setting up o mechonism for direct price control in order to
ensure stobility. Some meosures of minor importonce were token,
until the temporory Price ond Profit Freeze Act 1963 wos possed
os port of on "overoll economic solution". It wos in effect for
little less thon o yeor, ond h,qs followed by the Price Supervision
Act 1966 ond the Prices ond Profits Act 1971 ond 1974. \^/ith o
brief intervol of the Price ond Profit Freeze Act 1974. All these
Acts (inctuding some reloted but less importont Acts) ore
referred to in the literqture os thê Price Supervision Acts.
It shoul.d be noted thqt the generol ottitude in Denmork,
reflecting the view of other West-Europeon countries, is thot
odministered prices shoqld be temporqry only ond not of losting
durqtion.
Connection betweei¡ the th,o sets of lov,r. - While the Donish
monopolies legislotion proper deoLs with prices ond business
proctices where competition is restricted, the Price Supervision
Acts hove regord to sectors in which virtuol monopoly conditions
do not exist, where competition nevertheless ís too sluggish
to focilitote or initiote structurol chonges ond efficiency
increoses. These sectors, which ore chorocterized by .neutrolizedr
competition, ore often colled the 'grey zone.. Within the oreo
there is competition betì^/een firms, but it is nonprice competition
by woy of odvertising, design olterotions, bono fide or spurious
quolity differentiols, ond vorious other cost-increosing