European Competition Policy Modernization : From Notifications to Legal Exception
Council Regulation (EC) 1/2003 came into force on the 1st of May 2004 replacing themandatory notification of agreements between firms by a regime of ex post monitoring.This paper provides a theoretical justification for this shift based on the competitionauthority’s accuracy of judgement. We show that ex post monitoring dominates whenthe competition authority’s probability of error if low enough. We also investigate thetwo other existing legal systems, i.e. block exemptions and black list, and show that theyshould be preferred when the competition authority’s beliefs about the welfare impact ofthe agreements are very optimistic or very pessimistic.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01 41 17 60 81
Web page: http://www.crest.fr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Winand Emons, .
"Escalating Penalties for Repeat Offenders,"
American Law & Economics Association Annual Meetings
1005, American Law & Economics Association.
- Besanko, David & Spulber, Daniel F, 1993. "Contested Mergers and Equilibrium Antitrust Policy," Journal of Law, Economics and Organization, Oxford University Press, vol. 9(1), pages 1-29, April.
- Petros C. MAVROIDIS & Damien J. NEVEN, 2000. "The Modernisation of EU Competition Policy : Making the Network Operate," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.17, Université de Lausanne, Faculté des HEC, DEEP.
- Winand Emons, 2002.
"Subgame Perfect Punishment for Repeat Offenders,"
dp0211, Universitaet Bern, Departement Volkswirtschaft.
- Motta, Massimo & Polo, Michele, 2000.
"Leniency Programs and Cartel Prosecution,"
CEPR Discussion Papers
2349, C.E.P.R. Discussion Papers.
- Motta, M. & Polo, M., 1999. "Leniency Programs and Cartel Prosecution," Economics Working Papers eco99/23, European University Institute.
- Massimo Motta & Michele Polo, . "Leniency Programs and Cartel Prosecution," Working Papers 150, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- David P. Baron & David Besanko, 1984. "Regulation, Asymmetric Information, and Auditing," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 447-470, Winter.
- Reinganum, Jennifer F. & Wilde, Louis L., 1985. "Income tax compliance in a principal-agent framework," Journal of Public Economics, Elsevier, vol. 26(1), pages 1-18, February.
- Barros, Pedro Pita, 2003. "Looking behind the curtain--effects from modernization of European Union competition policy," European Economic Review, Elsevier, vol. 47(4), pages 613-624, August.
- Picard, Pierre, 1996. "Auditing claims in the insurance market with fraud: The credibility issue," Journal of Public Economics, Elsevier, vol. 63(1), pages 27-56, December.
- Besanko, David & Spulber, Daniel F, 1989. "Antitrust Enforcement under Asymmetric Information," Economic Journal, Royal Economic Society, vol. 99(396), pages 408-25, June.
When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2005-38. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Florian Sallaberry)
If references are entirely missing, you can add them using this form.