standing of competition authorities – civil · pdf filestanding of competition...
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Standing of Competition Authorities – Civil Society
Beatriz BozaICN Merida June 2003
2
Without competition… prices go up!
PoultryPeru
4.00
4.50
5.00
5.50
6.00
6.50
(Nue
vos
sole
s)
1994 1995 1996 1997 1998 1999 200220012000
Price fixing
begins
Elab: CAD-Ciudadanos al Día. Sources: Instituto Nacional de Estadística e Informática (INEI)
Po
ult
ry P
rice
s
Prices go up
Prices go down
Competition Enforcement
3
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Source: Indecopi, INEI
0
Urb
an b
us fa
re p
ricesUrban TransportPeru
(Nue
vos
Sol
es)
0.2
0.4
0.6
0.8
1
91 92 93 94 95 96 97 98
Price Fixing begins
Competition Enforcement
Prices go down
Prices go up
Without competition… prices go up!
4
Without competition… prices go up!
50
55
60
65
70
75
80
85
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
(US
$ ce
nts
per
lb)
Cit
ric
Aci
d P
rice
sCitric Acid
US, EU, Canada
Elab: Beatriz Boza/CAD-Ciudadanos al Día, based on Levenstein, M, Suslow, V & Oswald, L, International Price Fixing Cartels and Developing Countries: A Discussion of Effects and Policy Remedies, 2002.
Price fixing
begins
Competition Enforcement
action
Prices go up
Prices go down
5
Without competition… prices go up!
0
500
1000
1500
2000
2500
3000
3500
1989 1992 1993 1994 1995 1996 1997 1998 1999 2000
(US
$ p
er m
etri
c to
n)
Price fixing begins
Competition enforcement action
Gra
ph
ite
Ele
ctro
des
pri
ceGraphite Electrodes
US, EU
Elab: Beatriz Boza/CAD-Ciudadanos al Día, based on Levenstein, M, Suslow, V & Oswald, L, International Price Fixing Cartels and Developing Countries: A Discussion of Effects and Policy Remedies, 2002.
Price go up
Price go down
2001
6
Without competition… prices go up! …
Vit
amin
C p
rice
s
0
2
4
6
8
10
12
14
16
18
1985 1986 1988 1990 1992 1994 1996 1997 1999 2001 2003
Price fixing
begins
Competition Enforcement
VitaminsEU, US, Australia, Japan, Mexico
(US
$ p
er K
ilog
ram
)
Elab: Beatriz Boza/CAD-Ciudadanos al Día, based on Levenstein, M, Suslow, V & Oswald, L, International Price Fixing Cartels and Developing Countries: A Discussion of Effects and Policy Remedies, 2002.
Price go up
Price go down
7
Without competition… prices go up!
35
75
35
30%
9%
0%0
10
20
30
40
50
60
70
80
Competition Cartel Competition
Ch
eap
est
avai
lab
le p
rice
(U
nif
orm
pri
ces)
0
5
10
15
20
25
30
35
% o
f u
nif
orm
s b
ou
gh
t at
ch
eap
est
avai
lab
le
pri
ce (
join
tly)
School UniformsKorea
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Source: South Korean Fair Trade Commission
Prices go up Prices go down
Price %
8
Without competition… prices go up!
PharmaceuticalsUS
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Sources: Federal Trade Commission and Department of Veteran Affairs, Drugs and Pharmaceuticals Prices (2003)
11.36
377
83.84
0
50
100
150
200
250
300
350
400
1997 1998 2003 2003
(US
Dol
lars
)
Clo
raze
pat
e &
Lo
raze
pan
Pri
ces
Prices go up
Prices go down
Mylan Competitor
28.14
Price fixing
Competition Enforcement
9
Bar
rels
pri
ces
Rheem Price Envases Metálicos Price
15
17
19
21
23
25
27
29
31
33
1992 1993 1994 1995
US
$
CompetitionMonopoly
BarrelsPeru
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Source: Indecopi
Prices go down
With competition… prices go down!
10
With competition… prices go down!
1989 1990 1991 1992 1997 1998 1999 2000 2001 Oct 021993 1994 1995 1996
220
240
260
280
300
320
340
360
380
400
420
(£)
ElectricityUK
Ele
ctri
city
bill
s
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Source: Ofgem/energywatch
Liberalization
Prices go down
11
With competition… prices go down!
Us$
Ave
rage
dom
estic
airf
are
1975 1980 1985 1990 1995 2000
160
140
120
100
80
60
40
20
0
Domestic AirlinesUS
Elab: Beatriz Boza/CAD-Ciudadanos al Día. Source: Gowrisankaran, Gautam (2002), “Competition and Regulation in the Airline Industry”, Federal Reserve Bank of San Francisco Economic Letter, (2002-01) January 18th, 2002.
Liberalization
Prices go down
12
With competition… prices go down!
0
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001*
( N
uev
o S
ole
s)
Lo
cal R
ate
per
min
ute
TelecomPeru
Elab: Beatriz Boza/CAD-Ciudadanos al Día, based on OSIPTEL, The Peruvian Experience in the Liberalization of Telecom Services: Interconnection Issues, March 2000.
Liberalization
Prices go down
13
14
15
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