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When do Countries Introduce Competition Policy?

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Author Info

  • Forslid, Rikard

    ()
    (Dept. of Economics, Stockholm University)

  • Häckner , Jonas

    ()
    (Dept. of Economics, Stockholm University)

  • Muren, Astri

    ()
    (Dept. of Economics, Stockholm University)

Abstract

This paper first presents stylised evidence showing how the date of the introduction of competition policy is correlated with country size. Smaller countries tend to adopt competition policy later. We thereafter present a simple theoretical model with countries of different size and firms competing à la Cournot. The predictions of the model are consistent with the empirical regularity presented. An implication of our model is that globalisation may give very different incentives regarding competition policy for small and large developing countries.

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File URL: http://www2.ne.su.se/paper/wp05_06.pdf
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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2005:6.

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Length: 21 pages
Date of creation: 01 Jun 2005
Date of revision:
Handle: RePEc:hhs:sunrpe:2005_0006

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Keywords: Competition policy; anti-trust; trade costs;

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References

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  1. Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
  2. Keith Head & John Ries, 1997. "International Mergers and Welfare under Decentralized Competition Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1104-23, November.
  3. Damien NEVEN & Thomas VON UNGERN-STERNBERG, 1996. "Swiss Competition Policy in the Last Decade," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9611, Université de Lausanne, Faculté des HEC, DEEP.
  4. Richardson, Martin, 1999. "Trade and Competition Policies: Concordia Discors?," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 649-64, October.
  5. Eaton, Jonathan & Grossman, Gene M, 1986. "Optimal Trade and Industrial Policy under Oligopoly," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 383-406, May.
  6. Dixit, Avinash, 1984. "International Trade Policy for Oligopolistic Industries," Economic Journal, Royal Economic Society, vol. 94(376a), pages 1-16, Supplemen.
  7. Barros, Pedro P. & Cabral, Luis, 1994. "Merger policy in open economies," European Economic Review, Elsevier, vol. 38(5), pages 1041-1055, May.
  8. Mark Rysman, 2000. "Competition Policy as Strategic Trade," Papers 0100, Boston University - Industry Studies Programme.
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Cited by:
  1. Carletti, Elena & Hartmann, Philipp & Ongena, Steven, 2007. "The economic impact of merger control: what is special about banking?," Working Paper Series 0786, European Central Bank.
  2. Carletti, Elena & Hartmann, Philipp & Onega, Steven, 2007. "The economic impact of merger control legislation," CFS Working Paper Series 2008/04, Center for Financial Studies (CFS).

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