Industrial Policy and Competition Law and Policy

This afternoon - and it\u27s nearly evening - I would like us to try to rethink industrial policy. I think it makes no sense to speak of industrial policy and competition policy as distinct, one from the other, let alone as antagonistic policies. I would rather define industrial policy as one which frames the structural conditions necessary to ensure economic success in a globalizing economy. I therefore have no qualms in saying that competition policy should form a central plank in any industrial policy. As a member of the European Commission, I will focus my comments on the interconnect between industrial and competition policy in the European Union. But these issues are not just relevant for Europe. Our challenges are not so different from those facing other economies in today\u27s world. I will first explain why embracing open markets and renouncing protectionism, or what might be characterized as old-fashioned industrial policy, is not only desirable, but imperative. I will then go on to set out some essential ingredients of a modern industrial policy, at least as I see it, and explain why competition policy, in the widest sense, if you allow me, should play a central role in shaping this

Entrepreneurial Innovations, Competition and Competition Policy

We show that, in the case when innovations are for sale, increased product market competition, captured by reduced product market profits, can increase the incentives for innovations. The reason is that the incentive to innovate depends on the acquisition price which, in turn, might increase despite firms in the market making lower profits. We also show that stricter, but not too strict, merger and cartel policies tend to increase the incentive for innovations for sale by ensuring the bidding competition for the innovation and by increasing the relative profitability of being the most efficient firm in the industry. Moreover, it is shown that increased intensity of competition can increase the relative profitability of innovation for sale, relative to innovation for entry.Acquisitions; Entrepreneurship; Innovation; Competition

Competition, competition policy, and the GATT

The authors argue that further moves to liberalize trade and to implement existing GATT rules and principles may have a greater impact on global competition than would the pursuit of harmonization of competition policy. They also suggest that current GATT rules and case law provide scope for disputes to be brought before the GATT that relate to both the application and the nonapplication of existing domestic competition laws of GATT contracting parties. This leads to de facto discrimination between domestic and foreign products. Little use has been made of the GATT in this connection. Perhaps existing indirect avenues for raising competition-related disputes in the GATT should be pursued more actively. This would help identify what specific government policies might be the subject of multilateral negotiations and explicitly incorporated into the GATT framework.Environmental Economics&Policies,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOMEAND EXPENSE ACCOUNT,Economic Theory&Research,Access to Markets,Markets and Market Access

Competition Policy in Turkey

We review the enforcement of competition policy and the activities of Turkish Competition Authority during 1997-2000. Descriptive statistics are provided on the caseload handled, such as types of anti-competitive behavior investigated, breakdown of investigations by industry, violations found, and penalties imposed. Competition Authority has been stretched in terms of manpower as it has faced a flood of applications in addition to having to develop the necessary secondary legislation. The most salient cases handled concerned infringement of competition, while a rather lenient position was taken in authorizing mergers and acquisitions. The silence of the Turkish Competition Law regarding public undertakings is a potential source of problem for aligning competition policies with those of EU.competition policy; competition authority; Turkey

Optimal Competition: A Benchmark for Competition Policy

This paper introduces optimal competition: the best form of competition in an industry that a competition authority can achieve under the information constraint that it cannot observe firms' effciency levels.We show that the optimal competition outcome in an industry becomes more competitive as more money is spent in the industry, as the competition authority puts less weight on producer surplus and more weight on employment.The relation between competition and entry costs is U-shaped.Finally conditions are derived under which Cournot competition is too competitive compared to the optimal competition outcome.competition;trade policy;trade liberalization;regulations;benchmark

Competition Policy in Switzerland

This paper provides a critical review of competition policy in Switzerland. We analyse the legal statute, the institutional arrangements for its implementation and the case law since 1985.competition policy, Switzerland; political economy