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Symposium 2015

Virtual Library File - The Effect of Anticompetitive Market Distortions (ACMDs) on Global Markets

The Challenge

By 2050 the number of people living in cities will reach 6 billion. Existing cities will not be able to accommodate an estimated 2 billion people who will migrate from the countryside to urban centers ...

By 2050 the number of people living in cities will reach 6 billion. Existing cities will not be able to accommodate an estimated 2 billion people who will migrate from the countryside to urban centers seeking employment, education, and a better living standard. How to build the next 500 sustainable cities created by this rampant urbanization is among the greatest challenges of this century and it also represent one of the greatest opportunity to address a multitude of issues related to the environment, economic development, social advancement, medical infrastructure, and education.

This paper addresses the effect of anticompetitive market distortions (ACMDs) on global markets using case studies which show how measures such as a range of behind the border barriers and market distortions affect the efficiency of markets and impose welfare losses on these markets. Here, we mainly focus on how such measures may influence costs for distorted producers compared to non-distorted producers and how these cost differences affect market access, as well as consumer welfare within markets. This paper builds on “Enhancing Welfare by Attacking Anticompetitive Market Distortions” and lays out key issues describing global markets in a largely theoretical and partly empirical way thus allowing us to elaborate the key theme of ACMDs for future research. The paper will also evaluate the impact of ACMDs on welfare in the country itself.