The extent to which market participants are in a competitive relationship constitutes a key element both in competition law and in international economic law. Competition law practice has developed refined economic instruments designed to define relevant markets on the basis of demand...

As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...