Understanding Firm Behaviour and the Implementation of Competition Policy As Part of an Inclusive Growth Agenda for South Africa

Abstract

The paper will assess certain outcomes in the implementation of competition policy in South Africa to address the exertion of market power unilaterally by large firms or through collusive arrangements. Through reviewing the theoretical framework and literature linking competition policy and barriers to entry with economic participation, the paper develops a framework for understanding the centrality of competition legislation as a microeconomic tool towards achieving more inclusive outcomes in the South African economy. The paper draws on specific case studies from recent South African competition cases, impact assessment studies, and cross-country interventions in key sectors such as telecommunications and energy to demonstrate the role of competition policy in addressing strategic barriers to entry and participation in key economic sectors of the South African economy.