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Competition Policy in an Open Economy

Author

Listed:
  • Joseph F. Francois

    () (Erasmus University Rotterdam and CEPR)

  • Henrik Horn

    (World Trade Organization and CEPR)

Abstract

We examine the setting of national competition policy in a two-country setting,emphasizing the relationship of trade to the goals of competition policy (suchas the degree and nature of competition). The issues we address involve thegeneral equilibrium distributional effects of competition policy, therelationship of national competition policy to terms-of-trade gains and losses,the implications of "distinct national markets" linked through trade (thestarting point for all trade theorists) for the analysis of national competitionpolicy, and the characteristics of the Nash equilibrium policy sets.

Suggested Citation

  • Joseph F. Francois & Henrik Horn, 1998. "Competition Policy in an Open Economy," Tinbergen Institute Discussion Papers 98-092/2, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19980092
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    File URL: http://papers.tinbergen.nl/98092.pdf
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    References listed on IDEAS

    as
    1. David R. Collie, 2003. "Mergers and Trade Policy under Oligopoly," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 55-71, February.
    2. repec:fth:michin:362 is not listed on IDEAS
    3. Levinsohn, J., 1994. "Competition Policy and International Trade," Working Papers 362, Research Seminar in International Economics, University of Michigan.
    4. Auquier, A A & Caves, R E, 1979. "Monopolistic Export Industries, Trade Taxes, and Optimal Competition Policy," Economic Journal, Royal Economic Society, vol. 89(355), pages 559-581, September.
    5. Gene M. Grossman (ed.), 1992. "Imperfect Competition and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570939, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1229-1257.
    2. Cabral, Luis M.B., 2005. "An equilibrium approach to international merger policy," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 739-751, December.
    3. Bertrand Crettez & Marie-Cécile Fagart, 2009. "Does entry improve welfare? A general equilibrium approach to competition policy," Journal of Economics, Springer, vol. 98(2), pages 97-118, November.
    4. Horn, Henrik & Levinsohn, James, 2001. "Merger Policies and Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 111(470), pages 244-276, April.
    5. Amrita Ray Chaudhuri, 2014. "Cross-Border Mergers and Market Segmentation," Journal of Industrial Economics, Wiley Blackwell, vol. 62(2), pages 229-257, June.
    6. Raff, Horst & Schmitt, Nicolas, 2005. "Endogenous vertical restraints in international trade," European Economic Review, Elsevier, vol. 49(7), pages 1877-1889, October.
    7. Joseph Francois & Henrik Horn, 2006. "Antitrust in Open Economies," The Institute for International Integration Studies Discussion Paper Series iiisdp120, IIIS.
    8. repec:got:cegedp:34 is not listed on IDEAS
    9. Ray Chaudhuri, A., 2011. "Cross-Border Mergers and Market Segmentation (Replaces CentER DP 2010-096)," Discussion Paper 2011-112, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    competition policy; merger policy; trade policy; trade and imperfect competition;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F0 - International Economics - - General

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