Implications of Regional Cooperation on Country Specific Corporate Leniency Policies

Implications of Regional Cooperation on Country Specific Corporate Leniency Policies

By Mfundo Ngobese –  A good corporate leniency program together with a less unified industry, where firms tend to cheat on the cartel arrangement, could be a good recipe for initial significant filings of leniency applications. The ability of a competition authority to detect and obtain information independently is, in no small measure, a contributing […]

25 Years of Leniency Programs: A Turning Point in Cartel Prosecution

25 Years of Leniency Programs: A Turning Point in Cartel Prosecution

By Joan-Ramon Borrell, Carmen García, Juan Luis Jiménez & José Manuel Ordóñez de Haro –  This contribution reviews what we know about the effectiveness of leniency or amnesty programs in cartel prosecutions. Leniency programs have gradually been adopted by as many as 53 competition policy jurisdictions around the globe during the last 25 years. We […]

Leniency Carrots and Cartel Sticks – A Practitioners’ View on Recent Trends and Challenges Presented by The EU Leniency Program

Leniency Carrots and Cartel Sticks – A Practitioners’ View on Recent Trends and Challenges Presented by The EU Leniency Program

By Christian Ritz & Lorenz Marx –  In the past 25 years, leniency programs have been established in more than 80 jurisdictions across the globe. The overall purpose of such programs is to create incentives for cartelists to “blow the whistle” and to fully cooperate with the authorities to uncover and sanction the cartel. Leniency […]

Antitrust Chronicle – Behavioral Antitrust

Antitrust Chronicle – Behavioral Antitrust

Dear Readers, We are pleased to kick off 2019 with an edition of the CPI Antitrust Chronicle devoted to the latest developments in Behavioral Antitrust. Behavioral economics is generally defined as “a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.” Economic analysis has long held an important role […]

Should Antitrust Survive Behavioral Economics?

Should Antitrust Survive Behavioral Economics?

By Avishalom Tor –  The accepted economic justification for antitrust law rests on the neoclassical microeconomic model that shows that perfect competition maximizes efficiency and welfare. This model assumes that consumer demand reveals rational consumer beliefs and preferences. Yet an otherwise competitive market that caters to “erroneous” demand based on consumers’ mistaken beliefs or constructed, […]

The EU Google Decisions: Extreme Enforcement or the Tip of The Behavioral Iceberg?

The EU Google Decisions: Extreme Enforcement or the Tip of The Behavioral Iceberg?

By Amelia Fletcher –  The recent EU Google decisions may represent a high-water mark for the use of behavioral economics in EU antitrust to date, but what do they imply for competition policy in the future? Do such cases represent the outer extremes of how far behavioral thinking can and should be taken? Or do they […]

Facts Over Theory: The Contribution of Behavioral Economics to Competition Law

Facts Over Theory: The Contribution of Behavioral Economics to Competition Law

By Andreas Heinemann –  Traditionally, economic analysis is based on the homo economicus-hypothesis: Perfectly rational, strong-minded and self-interested persons and entities maximize their own utility or profit. By contrast, behavioral economics takes into account biases, inconsistent preferences, and altruism thus giving a more realistic view of decision-making. Competition law has always had an inclination to […]

Behavioral Firms: Does Antitrust Economics Need a Theoretical Update?

Behavioral Firms: Does Antitrust Economics Need a Theoretical Update?

By Elizabeth M. Bailey –  Modern day antitrust analyses are grounded in traditional neoclassical economics theory, assuming consumers and firms are rational, profit maximizing entities. While allowances are made for consumers to depart from neoclassical theory in consumer protection, the enforcement of antitrust policies continues to assume firms as rational, profit-maximizing entities. However, empirical literature […]

Behavioral Economics and Antitrust Law: Hindsight Bias

Behavioral Economics and Antitrust Law: Hindsight Bias

By Christopher Leslie –  Antitrust law often requires judges to place themselves in the position of one of the litigating parties at an earlier time and to make predictions, as of that point in time, about future outcomes. This invites hindsight bias. For example, in attempted monopolization cases, judges often assert that if the defendant […]