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Private Antitrust Litigation: Procompetitive or Anticompetitive?

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  • R. Preston McAfee
  • Hugo Mialon
  • Sue Mialon

Abstract

The antitrust laws are intended to permit procompetitive actions by firms and deter anticompetitive actions. We consider firms' incentives to use the antitrust lawsuits for strategic purposes, in particular to prevent procompetitive efficiency-improvement by rival firms. Our main result is that, ceteris paribus, smaller firms in more fragmented industries are more likely to use the antitrust laws strategically than larger firms in concentrated industries.

Suggested Citation

  • R. Preston McAfee & Hugo Mialon & Sue Mialon, 2005. "Private Antitrust Litigation: Procompetitive or Anticompetitive?," Emory Economics 0524, Department of Economics, Emory University (Atlanta).
  • Handle: RePEc:emo:wp2003:0524
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    File URL: http://economics.emory.edu/home/assets/workingpapers/hsmialon_05_24_paper.pdf
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    References listed on IDEAS

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    1. Baumol, William J & Ordover, Janusz A, 1985. "Use of Antitrust to Subvert Competition," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 247-265, May.
    2. Breit, William & Elzinga, Kenneth G, 1985. "Private Antitrust Enforcement: The New Learning," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 405-443, May.
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    Cited by:

    1. Grajzl, Peter & Baniak, Andrzej, 2018. "Private enforcement, corruption, and antitrust design," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 284-307.

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