Authors: V. Suslow¹; S. Evenett²

Source: Journal of International Economic Law, Volume 3, Number 4, 1 December 2000 , pp. 593-631(39)

Publisher: Oxford University Press

Abstract:

With the decline of government-imposed trade barriers policymakers have given greater attention to the international distortions created by the practices of private firms, including cartels. We critically evaluate the techniques used in the economic literature to estimate the effects of these private practices, finding them wanting on several grounds. In contrast, many of the necessary conditions for these practices to distort resource allocation are observable, which leads us to propose filters that policymakers can employ when evaluating accusations of impaired access to foreign markets or cartelization. Before undertaking an evaluation of the effects of a foreign private practice, policymakers would check whether the necessary conditions are in place for that practice to successfully distort market outcomes. Failure to pass this initial filter would lead to the accusation being dismissed. We discuss how this filter can be operationalized, drawing extensively upon published sources and empirical studies.

Document Type: Original article

Affiliations: 1: University of Michigan Business School, USA 2: Development Economics Research Group, The World Bank

Publication date: 2000-12-01

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• The Journal of International Economic Law is dedicated to encouraging thoughtful and scholarly attention to a very broad range of subjects that concern the relation of law to international economic activity, by providing the major English language medium for publication of high-quality manuscripts relevant to the endeavours of scholars, government officials, legal professionals and others. The emphasis will be on fundamental, long-term, systemic problems and possible solutions, in the light of empirical observations and experience, as well as theoretical and multi-disciplinary approaches. It is expected, therefore, that the journal's contents will potentially influence real events and provide important critiques of policies, negotiations, or court and tribunal cases. In this manner the journal should contribute modestly to promoting peace, world welfare and enhancement of the quality of life for all peoples.

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