Download e-book for iPad: Competition Policy Analysis: An Integrated Approach by Kai Hüschelrath

By Kai Hüschelrath

ISBN-10: 379082089X

ISBN-13: 9783790820898

The e-book develops an built-in procedure of pageant coverage research. according to the idea that the deterrence of anticompetitive behaviour is the basic goal of pageant coverage principles and their enforcement, 3 pivotal degrees of such an built-in strategy are pointed out: a basic point, a strategic point in addition to an operational point. next to the improvement of the process, it really is utilized to 3 conventional parts of pageant coverage – demanding middle cartels, horizontal mergers and predation – prior to conclusions are drawn on the right way to ameliorate present pageant coverage.

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Sample text

Antitrust interventions, on the other hand, are believed to do more harm than good, especially because “economists … have not reached a consensus about the ultimate effects of various business practices ... [I]t seems likely that well-intentioned prosecutors and judges face ... some difficulty in distinguishing good from bad business practices” (Bittlingmayer, 1996: 371). The so-called private interest theories of regulation (and antitrust) even go one step further and question the general existence of well-intentioned prosecutors.

From an empirical perspective, one way to investigate the necessity of competition policy is to analyse historic episodes with no or only lax antitrust enforcement. In the United Kingdom, Adam Smith (1776) already used this approach in his An Inquiry into the Nature and Causes of the Wealth of Nations and observed a general ‘tendency for collusion’. In Germany, Walter Eucken, amongst others, analysed historical experiences and found a ‘tendency of monopolisation’32 (1952: 31). He concludes that competition policy is necessary to secure competitive market structures in the medium and long term and generally to preserve freedom and organisation of the economic system (Wirtschaftsordnung).

However, recent discussions on ‘very innovative industries’ with winner-take-all markets suggest that although these firms might be dominant in their market, they face the constant threat of being replaced by firms seeking to develop better products. Following Schumpeter (1942), these monopolists competed vigorously, not necessarily in the market but for the market (see Veljanovski, 2006: 119f. and Geroski (2003) for round-ups). As a consequence, a (temporary) high level of market power in such markets might be socially desirable.

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Competition Policy Analysis: An Integrated Approach by Kai Hüschelrath

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