Competition Policy for Small Market Economies
Posted: 7 Oct 2003
For the most part, competition and antitrust policy literature have focused on large economies. Yet the economic models on which such policies are based do not necessarily apply to small market economies. The book demonstrates that optimal competition policy is very much dependent on the size of an economy. Because small market economies cannot support the same level of competition as large economies, the effect of applying the same competition policy to all economies is often a distorting one. In other cases, the special economic characteristics of small economies strengthen the case for applying policies which are focused on efficiency. Competition policy must therefore be equipped to deal effectively with the concentrated nature of most markets in small economies.
The book analyzes the effects of market size on competition policy, ranging from rules of thumb to more general policy prescriptions, such as policy goals, trade-offs, and remedial tools. It uses many examples of known and contemporary cases to demonstrate its prescriptions. Its focus extends beyond domestic competition policy to the evaluation of the current trend toward the worldwide harmonization of competition policies.
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