The Competition between Competition Rules
Open borders imply systems competition. This paper studies the implications of systems competition for the national co mpetition rules. It is shown that an equilibrium where all countries retain their antitrust laws does not exist, since abolishing this law makes it possible for a single country to establish a cartel that successfully appropriates foreign business profi t s. Instead of such an equilibrium, a deregulation race is likely to emerge in which all but the last country repeal their antitrust laws. The deregulation race results in a chain of Stackelberg leadership positions taken over by national cartels that rend ers lower profits and higher consumer rents than would have been the case with harmonization of the antitrust laws.
Year of publication: |
1999
|
---|---|
Authors: | Sinn, Hans-Werner |
Institutions: | CESifo |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Target Balances and the German Financial Account in Light of the European Balance-of-Payments Crisis
Sinn, Hans-Werner, (2012)
-
Target Losses in Case of a Euro Break-up
Sinn, Hans-Werner, (2012)
-
Target Loans, Current Account Balances and Capital Flows: The ECB’s Rescue Facility
Sinn, Hans-Werner, (2011)
- More ...