LAW & ECONOMICS: ANTICOMPETITIVE MARKET DISTORTIONS - EFFECT - GLOBAL MARKETS

The effect of anticompetitive market distortions (ACMDs) on global markets

This paper addresses the effect of anticompetitive market distortions (ACMDs) on global markets using case studies which show how measures such as a range of behind the border barriers and market distortions affect the efficiency of markets and impose welfare losses on these markets. Here, we mainly focus on how such measures may influence costs for distorted producers compared to non-distorted producers and how these cost differences affect market access, as well as consumer welfare within markets. This paper builds on “Enhancing Welfare by Attacking Anticompetitive Market Distortions” [1] and lays out key issues describing global markets in a largely theoretical and partly empirical way thus allowing us to elaborate the key theme of ACMDs for future research. The paper will also evaluate the impact of ACMDs on welfare in the country itself.

I. Introduction 1. In the last sixty years, there has been a marked decrease in trade barriers between countries as measured in the form of tariffs and certain non-tariff barriers to trade. It is only in the last fifteen to twenty years that this architecture has been marked by domestic competition agencies whose function is to promote competitive markets. 2. The last twenty years or so hafve also given us a very interesting experiment which has played itself out in a number of countries. After the fall of the Berlin Wall, many commentators assumed that the history of the 20th century which was seen as a Manichaean struggle between capitalism and communism, was now over. History had ended, [2] and capitalism had won. However, there was an implicit assumption in the manner in which

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Shanker SINGHAM, Robert Bradley, U. Srinvasa Rangan, The effect of anticompetitive market distortions (ACMDs) on global markets, December 2014, Concurrences Review N° 4-2014, Art. N° 69641, www.concurrences.com

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