Laws and regulations sometimes affect the nature and degree of competition, so it's valuable to assess those effects when comparing policy options. Well focussed regulations that do not unduly restrict competition are more likely to achieve their objectives and enhance consumer welfare. But unnecessary restrictions can raise prices for consumers and reduce product variety. Assessment and advocacy with a view to enhancing competition is an important role for government officials and the public policy community.

Competition assessment helps (i) identify areas where undue restrictions are most problematic and (ii) develop policy alternatives that still achieve the government’s goals but do so with less restrictive alternatives. Practical guidance on competition assessment can be difficult to find. One tool that governments can use for competition assessment is the method in the OECD's Competition Assessment Toolkit, available in many languages.

To identify policies that have the potential to unduly restrict competition, policymakers can consider three main points:

 - Do regulations limit the suppliers that consumers can select?

 - Do regulations restrict the actions suppliers can take in order to attract consumers?

 - Do regulations restrict the suppliers’ incentive to compete for consumers' business?

The Toolkit method is designed for use in a decentralized fashion across government at national, state and local levels. It can also be applied by specialized institutions, such as competition authorities.