English, Article, Journal or magazine article edition: Competition policy, regulation and the institutional design of industry supervision CŽcile AUBERT; JŽr™me POUYET

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Bookmark: http://trove.nla.gov.au/version/4587
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Competition policy, regulation and the institutional design of industry supervision
Author
  • CŽcile AUBERT
  • JŽr™me POUYET
Physical Description
  • preprint
Notes
  • We study the welfare impact of enforcing a competitive behavior from an unregulated fringe competing with a regulated dominant operator with imperfectly differentiated goods. The fringe is potentially collusive but may be supervised by a competition authority. We show that the complementarity/​substitutability between regulation and competition policy strongly depends on the nature of the market interaction. Forcing the fringe to adopt a competitive behavior always benefits consumers. However, it also affects the amount of subsidy that must be provided to the regulated firm for cost-reimbursement purposes, which has a social cost when public funds are costly. With complements, antitrust intervention is always welfare-improving. It is also preferable with weak substitutes but is detrimental to welfare for strong substitutes.
  • Regulation, Competition policy
  • RePEc:ctl:louvre:2004022
Language
  • English
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