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Optimal enforcement of competition policy: The commitments procedure under uncertainty

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  • Axel Gautier
  • Nicolas Petit

Abstract

The introduction of a commitments procedure in EU antitrust policy (Article 9 of Council Regulation 1/2003) has entitled the the European Commission to extensively settle cases of alleged anticompetitive conduct. In this paper, we use a formal model of law enforcement to identify the optimal procedure to remedy cases in a context of partial legal uncertainty (Katsoulacos and Ulph in Eur J Law Econ 41(2):255–282, 2016). We discuss in particular the merits of a policy of selective commitments where firms either take strong commitments or are investigated under the standard infringement procedure.
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Suggested Citation

  • Axel Gautier & Nicolas Petit, 2018. "Optimal enforcement of competition policy: The commitments procedure under uncertainty," LIDAM Reprints CORE 2944, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2944
    Note: In : European Journal of Law and Economics, 45(2), 195-224, 2018
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    Cited by:

    1. Mattéo Godin & Jean Hindriks, 2015. "A Review of critical issues on tax design and tax administration in a global economy and developing countries," BeFinD Working Papers 0107, University of Namur, Department of Economics.
    2. Cosnita-Langlais, Andreea & Tropeano, Jean-Philippe, 2022. "Learning by litigating: An application to antitrust commitments," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    3. Alain Marciano & Giovanni Ramello & Hans-Bernd Schaefer, 2020. "Foreword, special issue: economic analysis of litigations 2," European Journal of Law and Economics, Springer, vol. 50(1), pages 1-5, August.
    4. Rey, Patrick & Polo, Michele, 2022. "Unilateral Practices, Antitrust Enforcement and Commitments," CEPR Discussion Papers 17140, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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