Simulating Markets
A way to simulate a market is through the use of auctions in the provision of goods that come from monopoly sources. This would force the winner of the auction to pay at or near the expected excess returns its monopoly would generate. They would also have to price their products or services at the lowest retail price.
Given the complexity of the outcomes and requirements of the auction, constant monitoring and even traditional regulation may need to be employed to ensure a relatively competitive situation.
Auctions can also be used to allocate the rights to what may be non-tangible goods in a fair manner for all bidders. Problems can arise when there is collusion between bidders to obtain a lower price.