A Case for Affirmative Action in Competition Policy
AbstractWe analyze the trade-off faced by competition authorities envisaging a one-shot structural reform in a capitalistic industry. A structure is (1) a sharing of productive capital at some time and (2) a sharing of sites or any other non-reproducible assets. The latter represent opportunities. These two distinct dimensions of policy illustrate the importance of a dynamic theory in which firms may differ in several respects. Though equalization of endowments and rights is theoretically optimal, realistic constraints force competition authorities to adopt second-best solutions. Affirmative action here appears to explain why helping the disadvantaged contributes maximally to social surplus.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 9700.
Date of creation: 23 Jul 2008
Date of revision:
Competition policy; capacity accumulation; Cournot competition; asymmetric duopoly; regulatory consistency; differential games;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-30 (All new papers)
- NEP-COM-2008-07-30 (Industrial Competition)
- NEP-GTH-2008-07-30 (Game Theory)
- NEP-MIC-2008-07-30 (Microeconomics)
- NEP-REG-2008-07-30 (Regulation)
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