Competition policy: issues for developing country policymakers

Abstract

Abstract Competition policy is necessary to prevent the usurping of the benefits of a free market economy by dominant firms which scheme with peers or use their market power to exploit suppliers and consumers . At the same time the nuances of where economically efficient behavior ends and where monopolistic /unfair practices begin can be difficult to judge. This report introduces the reader to the various aspects of competition policy -antitrust regulation cartels mergers and acquisitions monopolistic practices intellectual property and research and industry regulation with pertinent examples and case studies . The report also surveys and contrasts competition law in different countries and explores the link between the evolution of a country`s competition policy and its economic growth. It ends with recommendation to policymakers who want to setup new regulatory authorities to canalize the efficiencies of some natural monopolies towards the maximum benefit of society.