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Product Market Competition and Economic Performance in Iceland

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Author Info
Thomas Laubach
Michael Wise ()

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Abstract

This paper discusses the current state of product market competition in Iceland, including the legal and regulatory framework, and suggests directions for further improvement. Given the size of the economy, efficiency considerations dictate high concentration in many markets, and preventing abuse of market dominance is therefore a challenging task. Changes to competition law since the early 1990s have strengthened competitive forces in many sectors of the economy, and proposed amendments to that law would further improve market surveillance. The changes in the regulatory framework for telecommunications have helped vigorous competition to develop in most segments, but there remain problems in pricing of access to the local loop. In the still publicly owned electricity sector, however, competition in generation and sales is so far virtually non-existent despite new legislation. Other policies discussed include agricultural support, policies towards foreign direct investment, and public procurement and provision of publicly funded services.

Concurrence sur les marchés de produits et performance économique en l’Islande
Le présent document de travail examine l’état actuel de la concurrence sur les marchés de produits en Islande, sous l’angle juridique et réglementaire notamment, et suggère un certain nombre d’améliorations possibles. Étant donné la taille de l’économie, des raisons d’efficience impose une forte concentration sur de nombreux marchés et il est donc d’autant plus indispensable d’éviter les abus de position dominante. Les modifications apportées au droit de la concurrence depuis le début des années 90 ont renforcé les forces concurrentielles dans de nombreux secteurs de l’économie et les amendements proposés permettraient d’améliorer encore la surveillance des marchés. S’agissant des télécommunications, l’évolution du cadre réglementaire a permis le développement d’une concurrence intense dans la plupart des segments du marché, mais des problèmes subsistent en ce qui concerne la tarification de l’accès à la boucle locale. En revanche, dans le secteur de l’électricité qui est encore entre les mains de l’État, la concurrence est pratiquement inexistante jusqu’ici au niveau de la production et de la commercialisation, en dépit des nouvelles dispositions législatives. Les politiques concernant le soutien à l’agriculture, l’investissement direct étranger, les marchés publics et les services publics sont également examinées.

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Publisher Info
Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 426.

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Date of creation: 15 Apr 2005
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Handle: RePEc:oec:ecoaaa:426-en

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Related research
Keywords: productivity productivité network industries réforme de la réglementation industrie de réseau regulatory reforms competition law public procurement marchés publics product market competition concurrence sur les marchés de produits loi de la concurrence

Find related papers by JEL classification:
H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L4 - Industrial Organization - - Antitrust Issues and Policies
L5 - Industrial Organization - - Regulation and Industrial Policy
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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This page was last updated on 2008-11-17.

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