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Land Use Restrictions as Barriers to Entry

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Abstract

The OECD Competition Committee debated competitive effects of land use restrictions in February 2008. Land use restrictions often serve valuable social purposes. The benefits of particular policies for land use must be balanced against the costs, though. The social harms that can arise when land use restrictions create “entry barriers” are rarely considered explicitly. Land use restrictions can raise the price and reduce supply of a broad range of real estate and, by preventing new and innovative stores from opening, reduce shopping options available to consumers. More careful integration of policy on land use restrictions with competition policy could benefit consumers and many entrepreneurs and reduce the likelihood that public or private restrictions will lead to supply scarcity. This roundtable examines competition problems affecting commercial construction and use permits, geographic density tests, adverse impact tests, access condition to rights of ay and private restrictions on land use. Steps are identified for improving public policies towards land use restrictions.

Suggested Citation

  • Oecd, 2010. "Land Use Restrictions as Barriers to Entry," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 10(2), pages 7-73.
    • Handle: RePEc:oec:dafkaa:5kmjlgt6ngq4
    DOI: 10.1787/clp-10-5kmjlgt6ngq4
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    Cited by:

    1. Marco Fregoni & Marco Leonardi & Sauro Mocetti, 2020. "The real effects of land use regulation: quasi-experimental evidence from a discontinuous policy variation," Temi di discussione (Economic working papers) 1261, Bank of Italy, Economic Research and International Relations Area.
    2. Raffaella Sadun, 2015. "Does Planning Regulation Protect Independent Retailers?," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 983-1001, December.
    3. Cabral, Luís, 2012. "Oligopoly Dynamics," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 278-282.

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