International Economic Relations and Antitrust Policy

• In Event: Citizen Opinion on International Cooperation

Abstract

Competition policy, called antitrust policy in the U.S., is aimed at reducing industrial concentration and increasing competition among firms. Although traditionally the purview of domestic politics, the proliferation of large multinational corporations precipitated proposals for international cooperation with regard to antitrust regulations and enforcement. However, countries' willingness to engage in international cooperation depends on their domestic politics, especially when firms headquartered in their country are likely targets of antitrust regulation. We theorize that support for domestic and international antitrust policy is shaped by individuals' concerns about how the policies shape their individual and country's economic prospects. We test support for antitrust policy and international antitrust cooperation using a national survey experiment on American individuals. We find that individuals are concerned about the effects of antitrust policy on national competitiveness, especially being placed at a disadvantage relative to foreign competitors, and that individuals have stronger support for antitrust policies when they are enforced against foreign firms. On average, Americans are supportive of both domestic and international cooperation on antitrust policy.

Authors

• Ryan Brutger, University of California, Berkeley

• Amy Pond