Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis
AbstractThis paper tests whether the transition from the old Economic Competition Act, which was based on the so-called “abuse system”, to the new Competition Act, which was based on “prohibition system”, in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2011-038.
Date of creation: 2011
Date of revision:
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Web page: http://center.uvt.nl
Price-cost margins; Competition law; Antitrust immunity; Antitrust enforcement; Dynamic panel data model; the Netherlands;
Other versions of this item:
- Brouwer, E. & Ozbugday, F.C., 2011. "Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis," Discussion Paper 2011-022, Tilburg University, Tilburg Law and Economic Center.
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L4 - Industrial Organization - - Antitrust Issues and Policies
- L6 - Industrial Organization - - Industry Studies: Manufacturing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-30 (All new papers)
- NEP-COM-2011-04-30 (Industrial Competition)
- NEP-CSE-2011-04-30 (Economics of Strategic Management)
- NEP-HME-2011-04-30 (Heterodox Microeconomics)
- NEP-IND-2011-04-30 (Industrial Organization)
- NEP-LAW-2011-04-30 (Law & Economics)
- NEP-REG-2011-04-30 (Regulation)
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