Title of Presentation

Facilitating or limiting competition: Rules on advertising and unfair competition

Date of Presentation

4-5-2016

Name of Conference

Association of Private Enterprise Education. 41st Annual Meetings.

Date of Conference

4-2016

Location of Conference

Las Vegas

Document Type

Conference Presentation

Department

Economics

Abstract

Based on the Peruvian experience, the author analyzes competition policies, in particular in regards to unfair competition and advertising. Competition policies, when adopted, are meant to contribute to the development of an economy by helping to achieve better outcomes from the working of the markets. Of course, if their content and application are very well defined. The key issue is how extensive they are, i.e. how far a government intervenes, in which cases, how to determine that an intervention is excessive or not, and at what costs. The guiding light is always the fundamental pillar that economic development is achieved to the extent that markets work freely and within an adequate institutional framework. In that sense, competition policies, if in place, are supposed to strengthen the market system, not to replace it. An undue use of these rules may limit private initiatives that could generate a more efficient use of resources or may, ironically, reduce competition in the markets. There is no discussion here whether competition policies should be adopted or not. The issues raised regarding the establishment and enforcing of competition policies may be seen by some as a justification not to have them or how to do a better job with them by others.

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