This note focuses on the welfare andcompetition (WELCOM) microsimulation tool. WELCOM, aneasy-to-use stata-based package with minimum datarequirements, was conceived as part of larger World Bankefforts to better understand how competition policy canimprove market efficiency and reduce poverty, especially indeveloping countries. Using examples from Mexico andEthiopia in the telecommunications and food sectors, thisnote shows how WELCOM can estimate likely distributionaleffects - that is, decrease in price and poverty, andincrease in product uptake - from expanding competition.