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Signaling through Public Antitrust Enforcement: An Extension

Author

Listed:
  • Madhuparna Ganguly

    (Indira Gandhi Institute of Development Research (IGIDR), India)

  • Rupayan Pal

    (Indira Gandhi Institute of Development Research (IGIDR), India)

Abstract

This note shows that the argument of Šaljanin(2017) [Šaljanin, 2017. “Signaling through public antitrust enforcement†, Economics Letters 169, 4 – 6] that public antitrust enforcement complements private investment is robust to allowing public investment in anti-trust enforcement to be productive. However, unlike as in the case of unproductive public investment, over investment in public antitrust enforcement does not necessarily signal that the government is pro-competition: in pooling equilibria either only the anti-competition government or both types of government over invests, whereas in the separating equilibrium only the pro-competition government over invests.

Suggested Citation

  • Madhuparna Ganguly & Rupayan Pal, 2019. "Signaling through Public Antitrust Enforcement: An Extension," Economics Bulletin, AccessEcon, vol. 39(1), pages 207-213.
  • Handle: RePEc:ebl:ecbull:eb-18-00546
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    More about this item

    Keywords

    Private and public enforcement; Signaling; Antitrust;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • K1 - Law and Economics - - Basic Areas of Law

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