Competition Policy, Market Power and Collusion in Developing Countries
The paper aims to examine some of the critical factors that make the implementation of effective competition policy difficult in developing countries. The paper begins by reviewing the variety of factors that have accounted for the rise in interest in promoting competition in developing countries over the past decade. It briefly reviews the various theoretical perspectives on competition as a background to understanding the range of approaches put forward for competition policy. A number of policy-related propositions, drawn from the theoretical literature, are examined and related to policy and practice in developing countries. The discussion focuses on the rivalry for the acquisition of assets in terms of entry and exit constraints and on the rivalry that exists in the use of assets, by considering the factors that facilitate collusion. It provides reasons why anti-competitive practices may be more difficult to detect in developing countries and why competition agencies face obstacles in implementing competition policies.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.sed.manchester.ac.uk/idpmEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Mason, Charles F & Phillips, Owen R & Nowell, Clifford, 1992. "Duopoly Behavior in Asymmetric Markets: An Experimental Evaluation," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 662-70, November.
- Farrell, Joseph & Shapiro, Carl, 1988.
"Horizontal Mergers: An Equilibrium Analysis,"
Department of Economics, Working Paper Series
qt0tp305nx, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Lambson Val Eugene, 1994. "Some Results on Optimal Penal Codes in Asymmetric Bertrand Supergames," Journal of Economic Theory, Elsevier, vol. 62(2), pages 444-468, April.
- Carlin, Wendy & Landesmann, Michael, 1997.
"From Theory into Practice? Restructuring and Dynamism in Transition Economies,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 13(2), pages 77-105, Summer.
- Wendy Carlin & Micheal Landesmann, 1998. "From Theory into Practice? Restructuring and Dynamism in Transition Economies," William Davidson Institute Working Papers Series 155, William Davidson Institute at the University of Michigan.
- S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
- Vickers, John, 1995. "Concepts of Competition," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 1-23, January.
- Dansby, Robert E & Willig, Robert D, 1979. "Industry Performance Gradient Indexes," American Economic Review, American Economic Association, vol. 69(3), pages 249-60, June.
- Teresa Fels & Joshua S. Gans & Stephen P. King, 2000. "The Role of Undertakings in Regulatory Decision-Making," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(1), pages 3-16.
- Bernard Hoekman & Peter Holmes, 1999. "Competition Policy, Developing Countries and the WTO," The World Economy, Wiley Blackwell, vol. 22(6), pages 875-893, 08.
- Simon J. Evenett & Margaret C. Levenstein & Valerie Y. Suslow, 2001.
"International Cartel Enforcement: Lessons from the 1990s,"
UMASS Amherst Economics Working Papers
2001-01, University of Massachusetts Amherst, Department of Economics.
- Simon J. Evenett & Margaret C. Levenstein & Valerie Y. Suslow, 2001. "International Cartel Enforcement: Lessons from the 1990s," The World Economy, Wiley Blackwell, vol. 24(9), pages 1221-1245, 09.
- Evenett, Simon J. & Levenstein, Margaret C. & Suslow, Valerie Y., 2001. "International cartel enforcement : lessons from the 1990s," Policy Research Working Paper Series 2680, The World Bank.
- Massimo Motta & Michele Polo, .
"Leniency Programs and Cartel Prosecution,"
150, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Shirley, Mary & Walsh, Patrick, 2000. "Public versus private ownership : the current state of the debate," Policy Research Working Paper Series 2420, The World Bank.
- Laffont, Jean-Jacques & Martimort, David, 1998.
"Mechanism Design with Collusion and Correlation,"
IDEI Working Papers
81, Institut d'Économie Industrielle (IDEI), Toulouse.
- E. Amann & G. M. De Paula & J. C. Ferraz, 2002. "Uk Corporate Acquisitions In Latin America In The 1990s: Lost Opportunities In A New Economic Environment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 73(4), pages 577-602, December.
- Compte, Olivier & Jenny, Frederic & Rey, Patrick, 2002. "Capacity constraints, mergers and collusion," European Economic Review, Elsevier, vol. 46(1), pages 1-29, January.
- Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
- B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
- Dixit, Avinash, 1982. "Recent Developments in Oligopoly Theory," American Economic Review, American Economic Association, vol. 72(2), pages 12-17, May.
- Amann, Edmund & de Paula, Germano Mendes & Ferraz, Joao Carlos, 2002. "UK Corporate Acquisitions in Latin America in the 1990s: Lost Opportunities in a New Economic Environment?," Centre on Regulation and Competition (CRC) Working papers 30613, University of Manchester, Institute for Development Policy and Management (IDPM).
- Joshua S. Gans, 2000. "The Competitive Balance Argument for Mergers," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(1), pages 83-93.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., .
"On the stability of collusive price leadership,"
CORE Discussion Papers RP
-522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Besanko, David & Spulber, Daniel F, 1989. "Antitrust Enforcement under Asymmetric Information," Economic Journal, Royal Economic Society, vol. 99(396), pages 408-25, June.
- Ross C. Singleton, 1997. "Competition Policy For Developing Countries: A Long-Run, Entry-Based Approach," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 1-11, 04.
- Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
When requesting a correction, please mention this item's handle: RePEc:ags:idpmcr:30681. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.