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Learning by litigating: An application to antitrust commitments

Author

Listed:
  • Cosnita-Langlais, Andreea
  • Tropeano, Jean-Philippe
Abstract
This paper examines the impact of commitment decisions on the efficiency of antitrust enforcement. We discuss the optimal use of commitments considering past rulings as a source of knowledge to better assess future similar antitrust cases. Our framework combines two key effects: the deterrence of the anticompetitive behavior by the different enforcement regimes, and the dynamic perspective through litigation as a source of learning. We show that if the level of penalty is high enough, the antitrust authorities undervalue the dynamic informational benefit of litigation and tend to over-use commitments.

Suggested Citation

  • Cosnita-Langlais, Andreea & Tropeano, Jean-Philippe, 2022. "Learning by litigating: An application to antitrust commitments," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:indorg:v:80:y:2022:i:c:s0167718721000874
    DOI: 10.1016/j.ijindorg.2021.102795
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    More about this item

    Keywords

    Antitrust; Commitments; Deterrence; Legal learning;
    All these keywords.

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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