The Effectiveness of Competition Policy and the Price-Cost Margin: New Econometric Evidence

Sector:Competition Economics | Competition, Regulation and Business | Remedies and enforcement
Published: December, 2008
Document type:LE publication (working papers and economic briefs) 
Tagged: other international quantitative analysis

This paper presents new econometric evidence suggesting that effective competition policy serves to curtail the exercise of market power – countries in which competition policy is judged to be more effective are characterised by lower market price-cost margins, controlling for other factors believed to influence the price-cost margin.