Learning by litigating: An application to antitrust commitments

B-Tier
Journal: International Journal of Industrial Organization
Year: 2022
Volume: 80
Issue: C

Authors (2)

Cosnita-Langlais, Andreea (not in RePEc) Tropeano, Jean-Philippe (Paris School of Economics)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:80:y:2022:i:c:s0167718721000874
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25