An Economic Instrument to Evaluate the (Pro)Competitive Nature of Industries: The Aggregate Index of Competitive Pressure

Romanian Competition Journal, No.2/2013

16 Pages Posted: 26 Jan 2014

See all articles by Radu A. Paun

Radu A. Paun

Competition Council of Romania

Paul Prisecaru

Romanian Competition Council

Date Written: December 15, 2013

Abstract

In this paper we propose an economic tool that can be used to evaluate the (pro)competitive nature of different national industries. The first part of the paper presents the theoretical foundation on which the Aggregate Index of Competitive Pressure (AICP) rests and the methodology to compute it. The results of applying this composite index for a set of 20 industries of the Romanian economy are presented next, along with a discussion on the robustness of these results. In our view, AICP is a proactive instrument that can prove useful to the competition authority, both in its attempts to constantly monitor various industries of the economy, and in its internal decision making process regarding institution’s resource allocation.

Keywords: competition, indicator, aggregation, index, economy

JEL Classification: B41, D43, K21, L13, L41

Suggested Citation

Paun, Radu A. and Prisecaru, Paul, An Economic Instrument to Evaluate the (Pro)Competitive Nature of Industries: The Aggregate Index of Competitive Pressure (December 15, 2013). Romanian Competition Journal, No.2/2013, Available at SSRN: https://ssrn.com/abstract=2384550

Radu A. Paun (Contact Author)

Competition Council of Romania ( email )

Bucharest
Romania
+40214054445 (Phone)
+40214054408 (Fax)

Paul Prisecaru

Romanian Competition Council ( email )

Piata Presei Libere, no. 1
corp D1, Sector 1
Bucharest, 013701
Romania

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