economies of scale and global competition

[Robert Weissman <rob@essential.org>]

  Following on an earlier line of list discussion, if a small or
  medium-sized country were to draw up a fresh antitrust law, among the
  challenges proponents would face are the following related arguments:
  
  1. Economies of scale mean strong anti-monopoly policy is inappropriate
  for our modest economy.
  
  2. We compete in a global economy. Even in industries where a single
  national firm controls the entire domestic market, it faces existing or
  potential competition from global competitors (assuming it benefits from
  no significant tariff or non-tariff protections). 
  
  3. We need big corporations so that they can be competitive in other
  countries' markets.
  
  What are the strongest lines of response to these claims? What is the best
  economic literature showing the economies of scale argument to be
  misplaced?
  
  Robert Weissman
  Essential Information			|   Internet:	rob@essential.org