Competition Policy and Privatization: An Organizational Perspective

Abstract

Competition (antitrust) policies in Central and Eastern Europe need to address both short-term problems associated with the transition to a market economy as well as the development of institutions suitable for a mature market economy. In this paper we employ an organizational perspective to explain some recent decisions by competition agencies in those countries and examine how those decisions may affect the competition agencies’ abilities to carry out their longer-term missions. The theme of the paper is that events and responses during transition will have important effects on ‘permanent’ policy, that the transition period problems are different from the long-term problems, and that choices made today should, to the extent possible, be cognizant of the problems such choices might present for future choices.

The authors wish to thank Phyllis Altrogge for her comments and contributions to this paper and participants at the 1992 Strategic Management Society Conference for their comments. The opinions expressed and arguments employed in this paper are the sole responsibility of the authors and do not necessarily reflect those of Phyllis or of the Federal Trade Commission.