Competition and Free Trade
by Pascal Salin (Author)

About the author
Pascal Salin is Honorary Professor of economics at Université Paris, Dauphine, France.

About this book
Competition and free trade are both concepts which are absolutely central for the understanding of human societies but are also often the subjects of fears and criticisms. It is argued that it is not possible to understand what competition really is without referring to the concept of freedom, and that free trade must be understood as the way to expand the scope of competition.
This book uniquely analyses the two concepts as closely interlinked, by approaching them in two parts. The first, ‘Competition’, introduces the reader to the traditional competition model, stresses its shortcomings, and explores the dynamics and range of the term in an authoritative way. The second part, ‘Free Trade’ examines the different types of trade, and analyses them in a wealth of contexts, from customs duties to import quotas. With discussions surrounding protectionist arguments, politics, liberalization and history, the author presents an overview of how competition and free trade operate in the real world.
This book dispels the fears and misunderstandings which have developed around these central pillars of the modern economy and is essential reading for those studying international economics, international trade, political economy or corporate finance.

Table of contents
PART I Competition 1
Introduction 3
1 The traditional competition model 5
    The characteristics of ‘atomistic’ competition 5
    The implications of the traditional theory 8
2 Breaches of atomistic competition 19
    Monopoly 19
    Oligopoly 24
    Economic optimum in the absence of atomistic competition 25
3 A critical appraisal of the atomistic theory 29
    A critical review of the assumptions of the model of pure and perfect competition 29
    A critical review of the concept of superprofit 32
4 The entrepreneur and the dynamics of competition 39
    The freedom to enter a market 39
    Going back to price discrimination 47
    The consequences of free competition 48
5 True and false breaches of competition 53
    Public violations of free competition 53
    Natural monopolies and cartels 57
6 How far competition? 63
    The limits of contractual freedom 63
    A comprehensive approach to competition 66
PART II Free trade 73
Introduction 75
7 Justifications for free trade 77
    Trade between individuals 77
    International trade 79
8 The effects of protectionism 83
    The analysis of customs duties 83
    The analysis of import quotas 88
    Effective protection 91
9 True and false barriers to trade 95
    Tax policy 95
    Subsidies and regulations 99
10 Protectionist arguments 103
    The infant-industry argument 103
    ‘Priority’ and ‘strategic’ national activities 105
    Protection against dumping 106
    Balance of payments equilibrium 111
    Protecting employment 113
    Taxes and ‘optimum’ customs duties 115
    Retaliation tariffs 117
11 The role of political processes 119
    The game of interests 119
    Protectionism as a hidden tax 120
    Pressure groups 122
12 Trade liberalization 125
    Unilateral liberalization 125
    Trade agreements 126
    Customs unions 128
    The European ‘single market’ 129
13 Historical landmarks 133
    From antiquity to the modern era 133
    The modern era 133
    From the nineteenth century until the First World War 134
    The twentieth century before the Second World War 135
    After the Second World War 135
    Debates about ‘globalization’ 136
Bibliography 139
Index 141

Series: Routledge Foundations of the Market Economy (Book 35)
Length: 158 pages
Publisher: Routledge; 1 edition (2018)
Language: English
ISBN-10: 1138103438
ISBN-13: 978-1138103436