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The Efficiency Test under Competition Law and Regulation in Small Distant Open Economy that is New Zealand

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  • Evans, Lewis

Abstract

This paper considers the application of competition law and price regulation inthe very small and isolated economy that is New Zealand. It argues that the total surplus (efficiency) criterion should be applied in tests of practices and actions where the competition threshold is not met or doubtful. Further it argues that this criterion is admitted if not required under New Zealand statutes. The differential treatment of affected parties including foreign investors in measuring the surplus is considered.

Suggested Citation

  • Evans, Lewis, 2005. "The Efficiency Test under Competition Law and Regulation in Small Distant Open Economy that is New Zealand," Working Paper Series 18958, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    • Handle: RePEc:vuw:vuwcsr:18958
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/18958
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    References listed on IDEAS

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    1. Ioannis N. Kessides, 2004. "Reforming Infrastructure : Privatization, Regulation, and Competition," World Bank Publications - Books, The World Bank Group, number 13525, December.
    2. Pravin Krishna, 2003. "Are Regional Trading Partners "Natural"?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 202-231, February.
    3. Evans, Lewis T. & Guthrie, Graeme A., 2005. "Risk, price regulation, and irreversible investment," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 109-128, February.
    4. Ian M. Dobbs, 2004. "Intertemporal price cap regulation under uncertainty," Economic Journal, Royal Economic Society, vol. 114(495), pages 421-440, April.
    5. David S. Evans & Richard Schmalensee, 2002. "Some Economic Aspects of Antitrust Analysis in Dynamically Competitive Industries," NBER Chapters, in: Innovation Policy and the Economy, Volume 2, pages 1-50, National Bureau of Economic Research, Inc.
    6. Lewis Evans & Patrick Hughes, 2003. "Competition Policy in Small Distant Open Economies: Some Lessons from the Economics Literature," Treasury Working Paper Series 03/31, New Zealand Treasury.
    7. Ratnayake, Ravi, 1999. "Industry concentration and competition: New Zealand experience," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 1041-1057, October.
    8. Olarreaga, Marcelo & Kee, Hiau Looi, 2001. "Mark-ups, Entry Regulation and Trade: Does Country Size Matter?," CEPR Discussion Papers 2853, C.E.P.R. Discussion Papers.
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