IDEAS home Printed from https://ideas.repec.org/p/tin/wpaper/19980092.html
   My bibliography  Save this paper

Competition Policy in an Open Economy

Author

Listed:
  • Joseph F. Francois

    (Erasmus University Rotterdam and CEPR)

  • Henrik Horn

    (World Trade Organization and CEPR)

Abstract

We examine the setting of national competition policy in a two-country setting,emphasizing the relationship of trade to the goals of competition policy (suchas the degree and nature of competition). The issues we address involve thegeneral equilibrium distributional effects of competition policy, therelationship of national competition policy to terms-of-trade gains and losses,the implications of "distinct national markets" linked through trade (thestarting point for all trade theorists) for the analysis of national competitionpolicy, and the characteristics of the Nash equilibrium policy sets.

Suggested Citation

  • Joseph F. Francois & Henrik Horn, 1998. "Competition Policy in an Open Economy," Tinbergen Institute Discussion Papers 98-092/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19980092
    as

    Download full text from publisher

    File URL: https://papers.tinbergen.nl/98092.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:fth:michin:362 is not listed on IDEAS
    2. James Levinsohn, 1994. "Competition Policy and International Trade," NBER Working Papers 4972, National Bureau of Economic Research, Inc.
    3. David R. Collie, 2003. "Mergers and Trade Policy under Oligopoly," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 55-71, February.
    4. Auquier, A A & Caves, R E, 1979. "Monopolistic Export Industries, Trade Taxes, and Optimal Competition Policy," Economic Journal, Royal Economic Society, vol. 89(355), pages 559-581, September.
    5. Gene M. Grossman (ed.), 1992. "Imperfect Competition and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570939, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francois, Joseph & Manchin, Miriam & Martin, Will, 2013. "Market Structure in Multisector General Equilibrium Models of Open Economies," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1571-1600, Elsevier.
    2. Joseph Francois & Henrik Horn, 2007. "Antitrust in Open Economies," Contributions to Economic Analysis, in: The Political Economy of Antitrust, pages 463-483, Emerald Group Publishing Limited.
    3. Francois, Joseph & Wooton, Ian, 2001. "Market structure, trade liberalization and the GATS," European Journal of Political Economy, Elsevier, vol. 17(2), pages 389-402, June.
    4. Horn, Henrik & Levinsohn, James, 2001. "Merger Policies and Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 111(470), pages 244-276, April.
    5. J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(4), pages 1229-1257.
    6. Ray Chaudhuri, A., 2014. "Acquisitions by Multinationals and Trade Liberalization," Discussion Paper 2014-006, Tilburg University, Center for Economic Research.
    7. Ray Chaudhuri, A., 2011. "Cross-Border Mergers and Market Segmentation (Replaces CentER DP 2010-096)," Discussion Paper 2011-112, Tilburg University, Center for Economic Research.
    8. Cabral, Luis M.B., 2005. "An equilibrium approach to international merger policy," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 739-751, December.
    9. Bertrand Crettez & Marie-Cécile Fagart, 2009. "Does entry improve welfare? A general equilibrium approach to competition policy," Journal of Economics, Springer, vol. 98(2), pages 97-118, November.
    10. Raff, Horst & Schmitt, Nicolas, 2005. "Endogenous vertical restraints in international trade," European Economic Review, Elsevier, vol. 49(7), pages 1877-1889, October.
    11. Aitor Ciarreta, 2012. "Cartels and regulation: effects on prices and real sales in sweden (1976–1990)," European Journal of Law and Economics, Springer, vol. 34(1), pages 127-146, August.
    12. Amrita Ray Chaudhuri, 2014. "Cross-Border Mergers and Market Segmentation," Journal of Industrial Economics, Wiley Blackwell, vol. 62(2), pages 229-257, June.
    13. Nakamura, Yasuhiko, 2011. "Bargaining over managerial delegation contracts and merger incentives in an international oligopoly," Research in Economics, Elsevier, vol. 65(1), pages 47-61, March.
    14. repec:got:cegedp:34 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rafael S. Espinosa Ramírez & M. Ozgur Kayalica, 2007. "Environmental Policies and Mergers’ Externalities," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 47-74, January-J.
    2. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    3. Erik Dietzenbacher & Alex Hoen & Bart Los & Jan Meist, 2009. "International convergence and divergence of material input structures: an industry-level perspective," Applied Economics, Taylor & Francis Journals, vol. 41(26), pages 3337-3344.
    4. Aidan Hollis, 2003. "Industrial Concentration, Output, and Trade: An Empirical Exploration," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(2), pages 103-119, March.
    5. Kim, Young-Han & Kim, Sang-Kee, 2012. "Welfare effects of competitive lobbying efforts in international oligopoly markets," Economic Modelling, Elsevier, vol. 29(3), pages 614-620.
    6. Avalos, Marcos & Schatán, Claudia, 2004. "Condiciones de competencia en el contexto internacional: Cemento, azúcar y fertilizantes en Centroamérica," EGAP Working Papers 2004-08, Tecnológico de Monterrey, Campus Ciudad de México.
    7. Beccarello, Massimo, 1997. "Time series analysis of market power: Evidence from G-7 manufacturing," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 123-136, February.
    8. Martin Chalkley & Geoff Stewart, 2011. "Trade Liberalisation, Market Structure and the Incentive to Merge," The World Economy, Wiley Blackwell, vol. 34(8), pages 1327-1347, August.
    9. Suleyman Basak & Anna Pavlova, 2005. "Monopoly Power and the Firm’s Valuation: A Dynamic Analysis of Short versus Long-Term Policies," Studies in Economic Theory, in: Alessandro Citanna & John Donaldson & Herakles Polemarchakis & Paolo Siconolfi & Stephan E. Spear (ed.), Essays in Dynamic General Equilibrium Theory, pages 1-34, Springer.
    10. Andrea Maneschi, 2000. "How New is the "New Trade Theory" of the Past Two Decades?," Vanderbilt University Department of Economics Working Papers 0027, Vanderbilt University Department of Economics.
    11. Brander, James A. & Spencer, Barbara J., 1984. "Trade warfare: Tariffs and cartels," Journal of International Economics, Elsevier, vol. 16(3-4), pages 227-242, May.
    12. Ray Chaudhuri, A., 2008. "A Dynamic Model of Endogenous Mergers and Trade Liberalization," Other publications TiSEM c5b9dd83-55cf-4bc9-9a58-f, Tilburg University, School of Economics and Management.
    13. Luis Gautier & Mahelet G. Fikru, 2024. "Welfare Impact of New Firm Acquisition," Natural Resource Management and Policy, in: Handbook of Merger Control and Environmental Policy, chapter 0, pages 105-132, Springer.
    14. Kit Pong Wong, 2003. "Forward Markets and the Behaviour of the Competitive Firm with Production Flexibility," Bulletin of Economic Research, Wiley Blackwell, vol. 55(3), pages 303-310, July.
    15. Nocco, Antonella & Ottaviano, Gianmarco I.P. & Salto, Matteo, 2019. "Geography, competition, and optimal multilateral trade policy," Journal of International Economics, Elsevier, vol. 120(C), pages 145-161.
    16. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    17. Heywood Fleisig & Catharine Hill, 1984. "The Benefits and Costs of Official Export Credit Programs," NBER Chapters, in: The Structure and Evolution of Recent US Trade Policy, pages 321-358, National Bureau of Economic Research, Inc.
    18. Qiu, Larry D. & Zhou, Wen, 2006. "International mergers: Incentives and welfare," Journal of International Economics, Elsevier, vol. 68(1), pages 38-58, January.
    19. HOLLANDER, Abraham & MACDISSI, Charbel, 2003. "Inter-temporal Price Discrimination when Imports are Restricted by Quotas," Cahiers de recherche 2003-02, Universite de Montreal, Departement de sciences economiques.
    20. Adam-Müller, Axel F. A. & Wong, Kit Pong, 2002. "Restricted Export Flexibility and Risk Management with Options and Futures," CoFE Discussion Papers 02/07, University of Konstanz, Center of Finance and Econometrics (CoFE).

    More about this item

    Keywords

    competition policy; merger policy; trade policy; trade and imperfect competition;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F0 - International Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tin:wpaper:19980092. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tinbergen Office +31 (0)10-4088900 (email available below). General contact details of provider: https://edirc.repec.org/data/tinbenl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.