Certificates of Need (CON) laws block the normal course of market economic development by making it illegal for potential new providers to enter a market without first getting government permission to do so. Unlike licensing, which sets provider qualifications that, once met, allows for entry, CON laws limit entry based on governmentally-determined need. This potentially blocks higher-quality providers from entering a market. CON laws limit quality and quantity and increase price in a market.
"Certificates of Need: An Oklahoma CON that Needs Repealing" by Byron Schlomach, Per Bylund, and Vance H.Fried provides a brief history of Certificates of Need (CON) in the U.S., Oklahoma's two CON laws, their economic effects, and recommends their repeal. Summary