Keeping Both Eyes Wide Open: The Life of a Competitive Authority among Sectoral Regulators
AbstractCompetition authorities must pay attention to many industries simultaneously. Sectoral regulators concentrate on their own industry. Often both types of authority may intervene in specific industries and there is an overlap of jurisdictions. We show how a competition authority’s resource allocation is affected by its relationships with sectoral regulators and their biases. If agencies collaborate (compete), the competition authority spends more effort on the industry with the more (less) consumer-biased sectoral regulator. The competition authority spends budget increases on the industry whose regulator reacts less to more effort. The socially optimal budget corrects for distortions due to regulatory bias, but only downwards.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 12/2008.
Length: 33 pages
Date of creation: 02 Jun 2008
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Competitive authority; sectoral regulators; regulatory bias;
Other versions of this item:
- Hoernig, Steffen & Nilssen, Tore & Pita Barros, Pedro Luis, 2008. "Keeping Both Eyes Wide Open: The Life of a Competition Authority Among Sectoral Regulators," CEPR Discussion Papers 6861, C.E.P.R. Discussion Papers.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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