Empirical Evaluation of the Effectiveness of Competition Policy
This study evaluates the usefulness of different modifications of empirical models estimating the so-called Boone indicator for capturing changes in the intensity of competition. We use as “natural experiments” in this evaluation data from three cartel cases: i) international elevators and escalators cartel in various European countries during the years 1995-2004, ii) Finnish raw wood cartel during the years 1997-2004, and iii) Finnish construction cartel 1994-2002. The findings support our argument that particularly when the primary interest is to evaluate the effectiveness of a certain competition policy action, the empirical model should properly take into account a possible structural break in data due to the policy action. Furthermore, our data hint that the methodological choice of prior empirical studies to use data only from one industry at a time may lead into the false conclusions when the Boone indicator is used for evaluating the effectiveness of sector-specific competition policy actions.
|Date of creation:||01 Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +358 (0)9 609 900
Fax: +358 (0)9 601 753
Web page: http://www.etla.fi/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Boone, J., 2004.
"A New Way to Measure Competition,"
2004-004, Tilburg University, Tilburg Law and Economic Center.
- Alexander Schiersch & Jens Schmidt-Ehmcke, 2010. "Empiricism Meets Theory: Is the Boone-Indicator Applicable?," Discussion Papers of DIW Berlin 1030, DIW Berlin, German Institute for Economic Research.
- Orley Ashenfelter & Daniel Hosken, 2010. "The Effect of Mergers on Consumer Prices: Evidence from Five Mergers on the Enforcement Margin," Journal of Law and Economics, University of Chicago Press, vol. 53(3), pages 417 - 466.
- J. A. Bikker & M. van Leuvensteijn, 2008. "Competition and efficiency in the Dutch life insurance industry," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2063-2084.
- Margaret C. Levenstein & Valerie Y. Suslow, 2011. "Breaking Up Is Hard to Do: Determinants of Cartel Duration," Journal of Law and Economics, University of Chicago Press, vol. 54(2), pages 455 - 492.
- Philipp Schumacher, 2013. "The EU’s flawed assessment of horizontal aspects in GE/Honeywell: re-visiting the last pillar of the European prohibition decision," European Journal of Law and Economics, Springer, vol. 35(2), pages 211-240, April.
- Jan Boone & Henry van der Wiel & J. van Ours, 2007.
"How (not) to measure competition,"
CPB Discussion Paper
91, CPB Netherlands Bureau for Economic Policy Analysis.
- Boone, J. & van Ours, J.C. & van der Wiel, H.P., 2007. "How (Not) to Measure Competition," Discussion Paper 2007-014, Tilburg University, Tilburg Law and Economic Center.
- Boone, Jan & van der Wiel, Henry & van Ours, Jan C, 2007. "How (not) to measure competition," CEPR Discussion Papers 6275, C.E.P.R. Discussion Papers.
- Boone, J. & van Ours, J.C. & van der Wiel, H.P., 2007. "How (Not) to Measure Competition," Discussion Paper 2007-32, Tilburg University, Center for Economic Research.
- Rabah Amir, .
"Market Structure, Scale Economies and Industry Performance,"
CIE Discussion Papers
2000-03, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Rabah Amir, 2000. "Market Structure, Scale Economies and Industry Performance," Discussion Papers 00-08, University of Copenhagen. Department of Economics.
- Rahab Amir, 2000. "Market Structure, Scale Economies, and Industry Performance," CIG Working Papers FS IV 00-08, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- AMIR, Rabah, 2003. "Market structure, scale economies and industry performance," CORE Discussion Papers 2003065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Harold Creusen & Bert Minne & Henry van der Wiel, 2006. "Competition in the Netherlands; an analysis of the period 1993-2001," CPB Document 136, CPB Netherlands Bureau for Economic Policy Analysis.
- Cosnita-Langlais, Andreea & Tropeano, Jean-Philippe, 2013.
"Fight cartels or control mergers? On the optimal allocation of enforcement efforts within competition policy,"
International Review of Law and Economics,
Elsevier, vol. 34(C), pages 34-40.
- Andreea Cosnita-Langlais & Jean-Philippe Tropeano, 2011. "Fight Cartels or Control Mergers? On the Optimal Allocation of Enforcement Efforts within Competition Policy," EconomiX Working Papers 2011-18, University of Paris West - Nanterre la Défense, EconomiX.
- Macallan, Clare & Millard, Stephen & Parker, Miles, 2008. "The cyclicality of mark-ups and profit margins for the United Kingdom: some new evidence," Bank of England working papers 351, Bank of England.
- Hyytinen, Ari & Steen, Frode & Toivanen, Otto, 2012.
"Anatomy of Cartel Contracts,"
Discussion Paper Series in Economics
25/2012, Department of Economics, Norwegian School of Economics.
- Hüschelrath, Kai & Smuda, Florian, 2013. "Do cartel breakdowns induce mergers? Evidence from EC cartel cases," ZEW Discussion Papers 13-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Clifford Winston & Vikram Maheshri & Scott M. Dennis, 2011. "Long-Run Effects of Mergers: The Case of U.S. Western Railroads," Journal of Law and Economics, University of Chicago Press, vol. 54(2), pages 275 - 304.
When requesting a correction, please mention this item's handle: RePEc:rif:wpaper:15. 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: (Kaija Hyvönen-Rajecki)
If references are entirely missing, you can add them using this form.