34 Pages Posted: 17 Jun 2008
Date Written: June 2008
Competition authorities must pay attention to many industries simultaneously. Sectoral regulators concentrate on their own industry. Often both types of authority may intervene in specific industries and there is an overlap of jurisdictions. We show how a competition authority's resource allocation is affected by its relationships with sectoral regulators and their biases. If agencies collaborate (compete), the competition authority spends more effort on the industry with the more (less) consumer-biased sectoral regulator. The competition authority spends budget increases on the industry whose regulator reacts less to more effort. The socially optimal budget corrects for distortions due to regulatory bias, but only downwards.
Keywords: Competition authority, Regulatory bias, Sectoral regulators
JEL Classification: H11, L40, L51
Suggested Citation: Suggested Citation
Barros, Pedro P. and Hoernig, Steffen and Nilssen, Tore, Keeping Both Eyes Wide Open: The Life of a Competition Authority Among Sectoral Regulators (June 2008). , Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1146825
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