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Towards a competitive society? : the promotion of competition as a goal of economic policy

Sandmo, Agnar
Working paper
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URI
http://hdl.handle.net/11250/162974
Date
1999-04
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  • Discussion papers (SAM) [579]
Abstract
This paper discusses the problems involved in considering competition policy as a separate area

of economic policy. Two problems are given special attention. The first is the doubtful

efficiency gain from enforcing competitive conditions in one industry when other industries are

not operating at their competitive levels; this is a classical problem in the theory of the second

best. The other is the justification for defining competition policy solely in terms of efficiency

without regard for distributional effects. It is argued that the concern for distribution is the

main reason why labour and agricultural markets, as well as the markets for public services,

have to a large extent been immune to interference from competition policy.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
1999:10

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