Competition Policy and Agreements between Firms
CMPO Working Paper No. 01/034
38 Pages Posted: 30 Nov 2001
Date Written: August 2001
The European Commission recently considered abolishing the notification system and focusing on a regime of ex post investigations.
Our objective is to show that a better understanding of markets can justify this reform. When the precision of the competition authority's analysis is not high enough, an ex ante control, like the notification system, is preferable. On the other hand, if the decision accuracy improves, an ex post regime achieves a higher social welfare.
Keywords: Competition Policy, Agreements, Imperfect Auditing
JEL Classification: L4, D8
Suggested Citation: Suggested Citation