OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Product Market Competition and Economic Performance in Iceland

This paper discusses the current state of product market competition in Iceland, including the legal and regulatory framework, and suggests directions for further improvement. Given the size of the economy, efficiency considerations dictate high concentration in many markets, and preventing abuse of market dominance is therefore a challenging task. Changes to competition law since the early 1990s have strengthened competitive forces in many sectors of the economy, and proposed amendments to that law would further improve market surveillance. The changes in the regulatory framework for telecommunications have helped vigorous competition to develop in most segments, but there remain problems in pricing of access to the local loop. In the still publicly owned electricity sector, however, competition in generation and sales is so far virtually non-existent despite new legislation. Other policies discussed include agricultural support, policies towards foreign direct investment, and public procurement and provision of publicly funded services.


Keywords: competition law, product market competition, network industries, productivity, public procurement, regulatory reforms
JEL: K21: Law and Economics / Regulation and Business Law / Antitrust Law; H57: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: Procurement; L94: Industrial Organization / Industry Studies: Transportation and Utilities / Electric Utilities; L1: Industrial Organization / Market Structure, Firm Strategy, and Market Performance; L4: Industrial Organization / Antitrust Issues and Policies; K23: Law and Economics / Regulation and Business Law / Regulated Industries and Administrative Law; L5: Industrial Organization / Regulation and Industrial Policy; L96: Industrial Organization / Industry Studies: Transportation and Utilities / Telecommunications
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