Download now Free registration required
The authors analyze the trade-off faced by competition authorities envisaging a one-shot structural reform in a capitalistic industry. A structure is a sharing of productive capital at some time and a sharing of sites or any other non-reproducible assets. The latter represent opportunities. These two distinct dimensions of policy illustrate the importance of a dynamic theory in which firms may differ in several respects. Though equalization of endowments and rights is theoretically optimal, realistic constraints force competition authorities to adopt second-best solutions. Affirmative action here appears to explain why helping the disadvantaged contributes maximally to social surplus.
- Format: PDF
- Size: 949.8 KB