Author(s)
James C. Cooper and Todd J. Zywicki
Source
Global Competition Policy, February 2007
Summary
This paper looks at how regulators can persuade other nations to allow more competition.
Policy Relevance
Supporters of competition within government can effectively explain its benefits to the public and other nations, helping overcome Latin America’s culture of regulation.
Main Points
- “Competition advocacy” means persuading officials to favor policies that support competition and consumer choice.
- Firms can influence policy through lobbying more effectively than consumers, so regulators favor consumers as a countermeasure. Favoring consumers makes regulators credible in attacking barriers to competition created by government, and in explaining competition to the public.
- Federal regulators can balance the concerns of state and local officials, who might otherwise favor influential constituents.
- In Latin America, competition advocacy helps counteract a culture of regulation.
- The FTC’s success comes from its being independent of special interests and politics.
- The FTC can help balance competition regulation with other policies.
- Promoting competition and consumer welfare, not a vague “public interest,” is most effective.
