Competition Policy

Question 1

What is the purpose of Competition Policy?

Answer 1

To promote and protect competition

Question 2

What do Anti-trust laws do?

Answer 2

Make anti-competitive behaviour illegal

Question 3

What is anti-competitive behaviour?

Answer 3

Behaviour that creates, increases and maintains market power

Question 4

List some potential punishments

Answer 4

fines, imprisonment, cease-and-desist orders, divestiture of assets, dissolution of organisation

Question 5

List the three theories of competition policy:

Answer 5

Monopoly pricing, merger policy, restrictive trade practices policy

Question 6

What is the economic rationale of Competition Policy?

Answer 6

To enhance efficiency (total surplus) therefore weighing anti-competitive behaviour effect against efficiency gain

Question 7

List the US Legal framework statutes

Answer 7

Sherman Act, Clayton Act, Fed Trade Commission Act

Question 8

List the EU Legal framework statutes

Answer 8

EC Treaty (articles 81,82), Regulation of implementation rules on competition (EC Treaty), EC merger regulation

Question 9

List the UK Legal framework statutes

Answer 9

Competition Act, Enterprise Act, EC Treaty, Enterprise and Regulatory Reform Act