Competition, Regulation and Inflation. Study Provides an Overview of Options for Action in Competition Economics

Michael Böheim

12.03.2024

Competition, Regulation and Inflation

Study Provides an Overview of Options for Action in Competition Economics

In the course of the emerging debate on anti-inflation initiatives, politicians very quickly called for measures to activate competition. Although competition policy cannot compensate for undesirable developments in monetary and fiscal policy, it is nevertheless able to make a long-term contribution to curbing inflation.

In this context, WIFO published a study by Michael Böheim on 12 March 2024 commissioned by the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology.

Based on an overview of markets with a particularly high market concentration, competition economic analyses will be carried out to determine the extent to which this high market concentration actually results in inflation-driving impairments of functioning competition. In addition to measures that can be implemented in the short term to intensify competition on the basis of the current legal framework, reform options for Austrian competition law will also be discussed.

In addition, options for using the possibilities for influencing corporate decisions for the benefit of the general public, in particular in the energy sector, which are provided by public ownership of companies, are also explored. Conclusions for Austrian competition policy round off the analysis.