The efficiency test under competition law and regulation in the small distant open economy that is New Zealand

Abstract

This paper considers the application of competition law and price regulation in the very small and isolated economy that is New Zealand. It argues that the total surplus (efficiency) criterion should be applied in tests of practices and actions where the competition threshold is not met or doubtful. Further, it argues that this criterion is admitted, if not required, under New Zealand statutes. The differential treatment of affected parties, including foreign investors, in measuring the surplus is considered.

Notes

Professor of Economics and Research Principal of the New Zealand Institute for the Study of Competition and Regulation (Victoria University of Wellington)

Acknowledgements: This paper has benefited from the comments of Mark Berry, James Mellsop and Andy Nicholls. Jason Varuhas and Richard Robinson provided research assistance.