Signaling through Public Antitrust Enforcement: An Extension
Madhuparna Ganguly () and
Rupayan Pal
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Madhuparna Ganguly: Indira Gandhi Institute of Development Research (IGIDR), India
Economics Bulletin, 2019, vol. 39, issue 1, 207-213
Abstract:
This note shows that the argument of Šaljanin(2017) [Šaljanin, 2017. “Signaling through public antitrust enforcement†, Economics Letters 169, 4 – 6] that public antitrust enforcement complements private investment is robust to allowing public investment in anti-trust enforcement to be productive. However, unlike as in the case of unproductive public investment, over investment in public antitrust enforcement does not necessarily signal that the government is pro-competition: in pooling equilibria either only the anti-competition government or both types of government over invests, whereas in the separating equilibrium only the pro-competition government over invests.
Keywords: Private and public enforcement; Signaling; Antitrust (search for similar items in EconPapers)
JEL-codes: H1 K1 (search for similar items in EconPapers)
Date: 2019-02-02
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