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TRANSFORMING COMPETITION POLICY
Murray B. Stanley 계명대학교 국제학연구소 2013 국제학논총 Vol.20 No.-
In recent years, microeconomic reform in many Western countries has led to an increase in industry competition. This is based on the belief that competition is the best means of lowering prices, improving choices for consumers, encouraging innovation and providing an environment for more efficient and productive business. The effectiveness of this approach has not been thoroughly examined. The terminology associated with the reforms is emotionally and intuitively appealing. It implies that any increase in competition is ‘good’ for the consumer. This approach does not stand up to closer scrutiny. In some industries the results have included higher prices and decline in quality. Other problems like lack of investment in research, development and infrastructure are less obvious impacts. The late W. Edwards Deming argued that a more intelligent approach to managing competition policy was required. This paper supports that argument by examining specific industry examples. Under the new approach outlined in this paper, the aim of competition policy would switch from ‘increasing competition’ to optimization. It is this new approach that will receive attention in this paper.