A key priority for the government is to increase UK productivity by extending competitive markets. Competition helps drive productivity by acting as a spur to managerial incentives and productive efficiency through ‘natural selection’ of firm entry and exit, and by promoting incentives to innovate. However, as Andrew Rees, Director, Analysis and Research, Consumer and Competition Policy, DTI, and Sasha Maguire, Economist, DTI, explain, recent evidence on these effects is perhaps less well known
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