The Unnoticed Difference between Antitrust and Competition Policy

Petra Luňáčková ()
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Petra Luňáčková: Institute of Economic Studies, Charles University, Prague, http://www.ies.fsv.cuni.cz

No 2011/38, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: This paper presents a model which focuses on differences between the competition policy of the EU and antitrust of the U.S. It introduces three versions – Neutral, American, and European. Two-stage game model takes the authority’s perspective and describes options and behavior of antitrust officials when a firm engages in non-price vertical agreement (possibly restraint). Optimal behavior is expressed as expected income of the authority (EIA) which is a function of probability of wrong decision(s) in the course of action. It takes into account specific preferences, different types of errors, fear of those errors, and harm they might cause. Comparison shows some unnoticed features and results slightly in favor of the EU.

Keywords: competition policy; antitrust; non-price vertical restraints; National Competition Authority; game form (search for similar items in EconPapers)
JEL-codes: C79 D79 L42 L44 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-12, Revised 2011-12
New Economics Papers: this item is included in nep-com and nep-reg
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