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COMPETITION POLICY IN TRANSITION : LESSONS FROM PERU

This paper studies the case of Peru in order to analyze prevailing misconceptions regarding the role of competition in transition economies. The impacts of these misconceptions on the transition to a market economy are examined and assessed. In particular, the role of potential competition and the belief that a review of potentially anticompetitive mergers would entail inappropriate bureaucratic control of private economic activities are examined. The paper provides a general framework to analyze competition policy in transition economies.