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Deterrence in Competition Law

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Author Info
Paolo Buccirossi (LEAR)
Lorenzo Ciari (LEAR and EUI)
Tomaso Duso (Humboldt University Berlin and WZB)
Giancarlo Spagnolo (University of Rome Tor Vergata, SITE, EIEF, CEPR)
Cristiana Vitale () (Lear)

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Abstract

This paper provides a comprehensive discussion of the deterrence properties of a competition policy regime. On the basis of the economic theory of law enforcement we identify several factors that are likely to affect its degree of deterrence: 1) sanctions and damages; 2) financial and human resources; 3) powers during the investigation; 4) quality of the law; 5) independence; and 6) separation of power. We then discuss how to measure deterrence. We review the literature that use surveys to solicit direct information on changes in the behavior of firms due to the threats posed by the enforcement of antitrust rules, and the literature based on the analysis of hard data. We finally argue that the most challenging task, both theoretically and empirically, is how to distinguish between “good” deterrence and “bad” deterrence.

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Publisher Info
Paper provided by SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Papers with number 285.

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Date of creation: 2009
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Handle: RePEc:trf:wpaper:285

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Related research
Keywords: Competition Policy; Law Enforcement; Deterrence;

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Find related papers by JEL classification:
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
L4 - Industrial Organization - - Antitrust Issues and Policies

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This page was last updated on 2009-11-20.

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