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.

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Tinbergen Institute Discussion Paper Series
Tinbergen Institute

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