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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2005:6:
When do Countries Introduce Competition Policy?

Rikard Forslid (), 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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