This paper examines social welfare effects of antitrust regulation in the presence of strategic trade policy within a reciprocal market model. Using a simple two-country trade model, we show that the enforcement of antitrust policy in the domestic market unambiguously improves the domestic...

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...