Market exchange is subject to an endogenously-determined level of predation which impedes specialization and gains from trade. Utility-maximizing agents opt between careers in specialized production and careers in predation. Three types of equilibria may emerge, autarky (with no predation and no...

This paper discusses the impact of the completion of the EC internal market on the competitive position of EFTA firms (and, hence, also on economic growth in EFTA countries). The discussion falls in three parts. First, the process of European economic integration in the last decades - as...