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On the optimal use of commitment decisions under European competition law

Listed author(s):
  • Philippe Choné
  • Saïd Souam

    ()

    (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Arnold Vialfont

In Europe, competition authorities have the power to close antitrust cases with “commitment decisions” after the concerned firms have offered agreed remedies. We show that the optimal use of this instrument is governed by a tradeoff between deterrence of potentially anticompetitive practices and early restoration of effective competition. We relate the optimal policy to the distribution of firm profit and consumer harm among cases. We find, however, that the optimal policy is generally not enforceable when the authority cannot credibly announce its policy prior to the firms’ strategic decisions. The lack of authority credibility may translate into insufficient or excessive use of commitment decisions.

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Paper provided by HAL in its series Post-Print with number hal-01410600.

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Date of creation: 2014
Publication status: Published in International Review of Law and Economics, Elsevier, 2014, 37, pp.169 - 179
Handle: RePEc:hal:journl:hal-01410600
Note: View the original document on HAL open archive server: https://hal-univ-paris10.archives-ouvertes.fr/hal-01410600
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  10. Arnold Vialfont, 2007. "Le droit de la concurrence et les procédures négociées," Revue internationale de droit économique, De Boeck Université, vol. 0(2), pages 157-184.
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