We examine the setting of national competition policy in a two-country setting, emphasizing the relationship of trade to the goals of competition policy (such as the degree and nature of competition). The issues we address involve the general equilibrium distributional effects of competition policy, the relationship of national competition policy to terms-of-trade gains and losses, the implications of "distinct national markets" linked through trade (the starting point for all trade theorists) for the analysis of national competition policy, and the characteristics of the Nash equilibrium policy sets.

Additional Metadata
Keywords competition policy, merger policy, trade and imperfect competition, trade policy
JEL International Economics: General (jel F0), Models of Trade with Imperfect Competition and Scale Economies (jel F12), Commercial Policy; Protection; Promotion; Trade Negotiations; International Organizations (jel F13)
Persistent URL hdl.handle.net/1765/7747
Series Tinbergen Institute Discussion Paper Series
François, J.F, & Horn, H. (1998). Competition Policy in an Open Economy (No. TI 98-092/2). Tinbergen Institute Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/7747