What Has Competition Done for Europe? An Inter-Disciplinary Answer

Abstract

In recent policy debates in Europe, the question 'what has competition done for Europe?' has been posed at the highest levels. This question merits careful reflection. Competition as it is understood by mainstream economic and legal scholars refers not to an ideology but to inter-firm rivalry in markets. Such rivalry ensures that consumers enjoy choice, low prices, and good value for money. The authors consider the historical origins and development as well as the current role and effects of competition policy in Europe. The latter includes legal provisions that address anti-competitive practices by firms and activities aimed at promoting competition in respect of potentially anti-competitive government measures. They conclude that such policy has made essential contributions to the high standard of living enjoyed by European citizens, to the policy and institutional infrastructure of Europe, to related international initiatives and, indeed, to the creation of Europe itself.

Keywords: Competition, Wealth, Protectionism, Europe

JEL Classification: D40, D31, F10, F13, F15