Tuesday, August 21, 2012
Posted by D. Daniel Sokol
Oliver Budzinski, Ilmenau University of Technology, University of Southern Denmark - Department of Environmental and Business Economics describes International Antitrust Institutions.
ABSTRACT: The paper discusses the economic theory of international antitrust institutions. Economic theory shows that non-coordinated competition poli-cies of regimes that are territorially smaller than the international markets on which business companies compete violate cross-border allocative efficiency and are deficient with respect to global welfare. At the same time, some diversity of antitrust institutions and policies promotes dynamic and evolutionary efficiency so that globally binding, worldwide homogenous competition rules do not represent a first-best solution either. After reviewing the existing international antitrust institutions and their prospects and limits from an economic perspective (with a focus on the International Competition Network, ICN), the paper discusses reform proposals from economic literature.