chapter  16
Maintaining Competition: Monopoly and Merger Policy
Pages 26

In this chapter we examine competition policy towards single firms that are enabled by their size or dominant market position to behave in an uncompetitive way. The reasons for having such a policy have been discussed in earlier chapters, in which we have seen how the possession of market power enables large firms to behave in an uncompetitive manner with possible adverse effects on industrial performance. How can large firms most successfully be controlled to prevent them from exploiting their market power at the expense of competitors and consumers?