Research Papers in Economics, Department of Economics, Stockholm University
When do Countries Introduce Competition Policy?
(), Jonas Häckner
() and Astri Muren
Abstract: This paper first presents stylised evidence showing how
the date of the introduction of competition policy is correlated with
country size. Smaller countries tend to adopt competition policy later. We
thereafter present a simple theoretical model with countries of different
size and firms competing ā la Cournot. The predictions of the model are
consistent with the empirical regularity presented. An implication of our
model is that globalisation may give very different incentives regarding
competition policy for small and large developing countries.
Keywords: Competition policy; anti-trust; trade costs; (follow links to similar papers)
JEL-Codes: F12; F15; F21; R12; (follow links to similar papers)
21 pages, June 1, 2005
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