Do We Need Competition Policy in an Integrated World Economy?

Posted: 9 Oct 1997

See all articles by A.E. Rodriguez

A.E. Rodriguez

Monterey Institute of International Studies

Mark D. Williams

U.S. Federal Trade Commission

Abstract

The recent emergence worldwide of pro-market regimes and the subsequent adoption of competition policies and enforcement agencies by nations worldwide have renewed interest in the harmonization of competition policy between the world's various antitrust agencies. Proposals by noted scholars and practitioners argue that since increased levels of international trade increase the likelihood of anticompetitive behavior, traditional approaches to antitrust are incapable of supporting an open and free international trading system. Accordingly, a supranational antitrust enforcement agency may be able to deter cartelization more effectively than individual agencies. A second related rationale offered in support of harmonization initiatives is that the often anticompetitive effects of the distinct and disparate national industrial policy objectives can only be restrained by standardization of international competition practices. In this paper, we closely examine the arguments offered in support of harmonization of competition policy and find them unpersuasive. First, numerous empirical studies suggest that trade and the concurrent expansion of geographic markets do not augment the possibility of anticompetitive practices but rather reduce them. Second, it is questionable that the efficiencies associated with the internationalization of antitrust enforcement are significant.

JEL Classification: N76

Suggested Citation

Rodriguez, Armando E. and Williams, Mark David, Do We Need Competition Policy in an Integrated World Economy?. Available at SSRN: https://ssrn.com/abstract=35420

Armando E. Rodriguez (Contact Author)

Monterey Institute of International Studies ( email )

460 Pierce Street
Monterey, CA 93940
408-647-6424 (Phone)
408-647-6435 (Fax)

Mark David Williams

U.S. Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,287
PlumX Metrics