Journal ArticleDOI
Private v. Public Antitrust Enforcement: A Strategic Analysis
Reads0
Chats0
TLDR
In this paper, the authors compare private and public enforcement of the antitrust laws in a simple strategic model of antitrust violation and lawsuit, and highlight the tradeoff that private firms are initially more likely than the government to be informed about antitrust violations, but are also more likely to use the laws strategically, to the disadvantage of consumers.Abstract:
We compare private and public enforcement of the antitrust laws in a simple strategic model of antitrust violation and lawsuit. The model highlights the tradeoff that private firms are initially more likely than the government to be informed about antitrust violations, but are also more likely to use the antitrust laws strategically, to the disadvantage of consumers. Assuming coupled private damages, if the court is sufficiently accurate, adding private enforcement to public enforcement always increases social welfare, while if the court is less accurate, it increases welfare only if the government is sufficiently inefficient in litigation. Pure private enforcement is never strictly optimal. Public enforcement can achieve the social optimum with a fee for public lawsuit that induces efficient information revelation. Private enforcement can also achieve the social optimum with private damages that are efficiently multiplied and decoupled.read more
Citations
More filters
Book
博弈论 : 矛盾冲突分析 = Game theory : analysis of conflict
Roger B. Myerson,剣平 費 +1 more
TL;DR: This chapter discusses Decision-Theoretic Foundations, Game Theory, Rationality, and Intelligence, and the Decision-Analytic Approach to Games, which aims to clarify the role of rationality in decision-making.
Journal ArticleDOI
Public vs. Private Enforcement of Antitrust Law: A Survey
Ilya Segal,Michael D. Whinston +1 more
TL;DR: In this article, the authors survey the general economic issues regarding public vs. private enforcement and the (relatively scarce) economic literature that pertains to it, and the analysis is pertinent to the 2005 proposal by the European Commission to facilitate private antitrust litigation in the EU by changing the procedural rules and some substantive law.
Journal Article
Injunctions against false advertising
Florian Baumann,Alexander Rasch +1 more
TL;DR: In this article, the authors compare private and public law enforcement in the form of the demand for injunctions against false advertising, and show that it can be optimal either to have the private entity or the government agency as plaintiff, where the optimal regime depends on the share of naive consumers and the level of trial costs in a non-trivial way.
Book
Group Litigation in European Competition Law: A Law and Economics Perspective
TL;DR: In this article, an economic and legal framework was used to analyse the efficiency of group litigation mechanisms with regard to deterrence of competition law infringements, and the analysis showed that neither collective nor representative actions will be the optimal group litigation mechanism in the sense of the best group litigation to reach the goal of efficient deterrence.
Posted Content
Private Antitrust Enforcement in the Presence of Pre-Trial Bargaining
TL;DR: In this article, the effect of encouraging private actions for breaches of competition law is studied, and it is shown that facilitating private action increases the number of cases opened and sometimes but not always makes plaintiffs more aggressive in pre-trial bargaining.
References
More filters
Book
博弈论 : 矛盾冲突分析 = Game theory : analysis of conflict
Roger B. Myerson,剣平 費 +1 more
TL;DR: This chapter discusses Decision-Theoretic Foundations, Game Theory, Rationality, and Intelligence, and the Decision-Analytic Approach to Games, which aims to clarify the role of rationality in decision-making.
Book
Game Theory : Analysis of Conflict
TL;DR: In this article, the authors propose a game theoretic approach to games based on the Bayesian model and demonstrate the existence of Nash Equilibria and the Focal Point Effect.
Book
Economic analysis of law
TL;DR: The Economic Analysis of Law, Eighth Edition as mentioned in this paper provides a comprehensive casebook of the economic analysis of the law, including common law, public regulation of the market, business organizations and financial markets, distribution of income and wealth, the legal process, and the Constitution and the federal system.
Journal ArticleDOI
Law Enforcement, Malfeasance, and Compensation of Enforcers
Gary S. Becker,George J. Stigler +1 more
TL;DR: In this article, a new economic approach to political behavior seeks to develop a positive theory of legislation, in contrast to the normative approach of welfare economics, by asking why certain industries and not others become regulated or have tariffs imposed on imports or why income transfers take the form and direction they do.
Journal ArticleDOI
Tax Policy and Entrepreneurial Entry
TL;DR: Carroll et al. as mentioned in this paper studied the effect of tax rates on the decision to become an "entrepreneur" and found substantial evidence for this effect on entrepreneurship using variation in tax schedules faced by households in the Panel Study on Income Dynamics over the period from 1979 to 1992.
Related Papers (5)
Private Versus Public Antitrust Enforcement: A Strategic Analysis
Should Private Antitrust Enforcement Be Encouraged in Europe
Defying Conventional Wisdom: The Case for Private Antitrust Enforcement
Joshua P. Davis,Robert H. Lande +1 more