Self-Assessment System: Detrimental Effects upon Entrepreneurial and Innovative Activity

20 Pages Posted: 23 Feb 2013 Last revised: 26 Feb 2013

See all articles by Mitja Kovac

Mitja Kovac

Faculty of Economics University of Ljubljana

Patricia Kotnik

University of Ljubljana - Faculty of Economics

Date Written: February 21, 2013

Abstract

Efficient regulatory mechanisms that induce innovation, co-operation and deter competition law infringements have recently been the subject of growing attention. Competition is essential to the innovation process which in general terms enables entrepreneurship. But so too is co-operation between firms which requires an exchange of information and may lead to inefficient collusive behaviour. The optimal trade-off between the provision of stable entrepreneurial incentives and the new European competition law’s reform with the self-assessment system has been largely missing from the current scholarly debate. This paper identifies the unintended horizontal side effects of this new self-assessment system upon the entrepreneurial activity, offers a legal evaluation of the optimal entrepreneurial incentive mechanisms and provides legal and economics arguments for an improved regulatory response.

Keywords: competition policy, information exchange, entrepreneurship, innovation, self-assessment system

JEL Classification: K42

Suggested Citation

Kovac, Mitja and Kotnik, Patricia, Self-Assessment System: Detrimental Effects upon Entrepreneurial and Innovative Activity (February 21, 2013). Available at SSRN: https://ssrn.com/abstract=2221811 or http://dx.doi.org/10.2139/ssrn.2221811

Mitja Kovac (Contact Author)

Faculty of Economics University of Ljubljana ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Patricia Kotnik

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

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