Change search
ReferencesLink to record
Permanent link

Direct link
Trade Costs and the Timing of Competition Policy Adoption
Stockholm University, Faculty of Social Sciences, Department of Economics.
Stockholm University, Faculty of Social Sciences, Department of Economics.
Stockholm University, Faculty of Social Sciences, Department of Economics.
2011 (English)In: Canadian Journal of Economics, ISSN 0008-4085, E-ISSN 1540-5982, Vol. 44, no 1, 171-200 p.Article in journal (Refereed) Published
Abstract [en]

This paper first presents stylized evidence showing how the date of the adoption of competition policy is correlated with country size. Smaller countries tend to adopt competition policy later. We then present a theoretical model with countries of different size, trade costs, and firms competing à la Cournot. In the model we show that reduced trade costs following from increasing globalization affect countries differently depending on their size. This has implications for the incentives to introduce competition policy. The predictions of the model are consistent with the empirical regularity presented.

Abstract [fr]

Ce mémoire présente certains résultats qui suggèrent comment le moment choisi pour adopter une politique de concurrence est co-reliéà la taille du pays. Les petits pays tendent à adopter des politiques de concurrence plus tard. On présente un modèle théorique avec des pays de tailles différentes, qui ont aussi des coûts de commerce différents, et où les firmes se concurrencent à la Cournot. On montre que la réduction des coûts de commerce qui suit une mondialisation croissante affecte les pays d'une manière différente selon leur taille. Cela a des implications pour les incitations à mettre en place une politique de concurrence. Les prédictions du modèle sont consistantes avec les régularités empiriques observées.

Place, publisher, year, edition, pages
2011. Vol. 44, no 1, 171-200 p.
National Category
URN: urn:nbn:se:su:diva-53605DOI: 10.1111/j.1540-5982.2010.01628.xISI: 000287033500007OAI: diva2:391026
Available from: 2011-01-24 Created: 2011-01-24 Last updated: 2012-02-15Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Forslid, RikardHäckner, JonasMuren, Astri
By organisation
Department of Economics
In the same journal
Canadian Journal of Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 35 hits
ReferencesLink to record
Permanent link

Direct link