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Predation enforcement options: an evaluation in a Cournot framework

Author

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  • Kai Hüschelrath

    ()

  • Jürgen Weigand

    ()

Abstract

The paper characterises the building blocks of a framework to enforce anti-predation rules and subsequently evaluates selected enforcement options in a Cournot-type duopoly predation model. Differentiating between a no rule approach, an ex ante approach and two ex post approaches, it is shown that an ex post approach typically maximises overall welfare. However, an ex ante approach can be the preferred option in cases where the entrant has a large cost advantage over the incumbent. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Kai Hüschelrath & Jürgen Weigand, 2013. "Predation enforcement options: an evaluation in a Cournot framework," European Journal of Law and Economics, Springer, vol. 35(2), pages 241-272, April.
  • Handle: RePEc:kap:ejlwec:v:35:y:2013:i:2:p:241-272
    DOI: 10.1007/s10657-011-9227-x
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    File URL: http://hdl.handle.net/10.1007/s10657-011-9227-x
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    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters,in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    2. Baumol, William J, 1996. "Predation and the Logic of the Average Variable Cost Test," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 49-72, April.
    3. Cabral, Luis M B & Riordan, Michael H, 1997. "The Learning Curve, Predation, Antitrust, and Welfare," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 155-169, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Competition policy; Monopolisation; Predation; Enforcement; K21; L41;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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