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The Anticompetitive Effects of the Antitrust Policy

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  • David Bartolini

    (Universit… Politecnica delle Marche, MoFiR)

  • Alberto Zazzaro

    (Universit… Politecnica delle Marche, MoFiR)

Abstract

Few scholars have seriously considered the possibility that the very existence of an antitrust law might make markets less competitive. In this chapter, we provide a selective review of this thought-provoking literature. The focus of our analysis is on contributions within the limits of the neo-classical theory of firms and markets, pointing out that antitrust legislation can hinder price/output competition. Following this literature, the introduction of antitrust penalties or leniency programmes can have the perverse effect of stabilizing cartels and increasing their size, as these policies may raise the costs of deviating and/or renegotiating a collusive agreement.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David Bartolini & Alberto Zazzaro, 2009. "The Anticompetitive Effects of the Antitrust Policy," Mo.Fi.R. Working Papers 18, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    • Handle: RePEc:anc:wmofir:18
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    References listed on IDEAS

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    Cited by:

    1. Bartolini David & Zazzaro Alberto, 2011. "The Impact of Antitrust Fines on the Formation of Collusive Cartels," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-30, September.

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