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Competition, Information, and Development

TLDR
In this article, the authors ask whether and how each of these problems calls for a different view of competition, to what extent competition helps solve these problems, and how it is implementable.
Abstract
Developing countries suffer from weak institutions: inefficient tax systems, lack of auditing expertise, poor education, corruption, inefficient financial systems, lack of credibility of governments, capture of politicians and bureaucrats. This paper asks whether and how each of these problems calls for a different view of competition, to what extent competition helps solve these problems, and to what extent it is implementable. Even though the pressure of competition is generally favorable, some care must be exerted in implementing it in the context of weak institutions. The need to support institutional improvements and to condition aid on such changes is great.

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Citations
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Journal ArticleDOI

Incentives and Organizations in the Public Sector: An Interpretative Review

TL;DR: In this article, a brief overview of the theory of incentives is given, with special attention to issues that are important in the public sector, in general and human capital in particular.
Posted Content

Regulation of natural monopolies

TL;DR: Joskow as discussed by the authors provides a comprehensive overview of the theoretical and empirical literature on the regulation of natural monopolies, including alternative definitions of natural monopoly, regulatory goals, alternative regulatory institutions, price regulation with full information, regulation with imperfect and asymmetric information and topics on the measurement of the effects of price and entry regulation in practice.
Posted Content

Persistence of Firm-Level Profitability in Turkey

TL;DR: In this article, the authors studied the dynamics of company profits for 172 of the largest manufacturing firms in Turkey and used a time-series analysis to estimate the long-run projected profits and firm-specific speed of adjustment parameters that measures the rate at which short-run rents are eroded.
Posted Content

Competition and Competition Policy in Emerging Markets: International and Developmental Dimensions

TL;DR: In this paper, the role of competition policy in emerging markets from a developmental and international perspective is examined, and it is shown that the intensity of competition in leading emerging markets is no less than that observed in advanced countries.
Posted Content

Some Lessons from Transaction-Cost Politics for Less-Developed Countries

TL;DR: In this paper, the authors argue that success requires reform of the rules and institutions which govern the strategic interaction of the participants in the political game, and that reforms must cope with the special interests and asymmetric information which already exist.
References
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Journal ArticleDOI

A Theory of Incentives in Procurement and Regulation.

TL;DR: A Theory of Incentives in Procurement and Regulation (TIIN) as mentioned in this paper is a popular textbook for regulatory economics, with a particular focus on the regulation of natural monopolies such as military contractors, utility companies and transportation authorities.
Book

A Theory of Incentives in Procurement and Regulation

TL;DR: A Theory of Incentives in Procurement and Regulation (TIIN) as mentioned in this paper is a popular textbook for regulatory economics, with a particular focus on the regulation of natural monopolies such as military contractors, utility companies and transportation authorities.
Book ChapterDOI

Corruption and Development: A Review of Issues

TL;DR: In this article, the authors discuss the reasons for the persistence of corruption that have to do with frequency-dependent equilibria or intertemporal externalities, and suggest that corruption may actually improve efficiency and help growth.
Journal ArticleDOI

Rents, Competition, and Corruption

TL;DR: In this paper, the authors examined the relationship between natural rents and corruption and found that natural rents, as in the case of oil, and rents induced by lack of product market competition foster corruption.
Journal ArticleDOI

The Market Mechanism as an Incentive Scheme

TL;DR: In this paper, the authors formalize the idea that there is a common component to firms' costs, i.e., as one firm's (total and marginal) costs fall, so do those of other firms.