Private Antitrust Litigation: Procompetitive or Anticompetitive?
14 Pages Posted: 19 Aug 2005
Date Written: August 16, 2005
The antitrust laws are intended to permit procompetitive actions by firms and deter anticompetitive actions. We consider firms' incentives to use the antitrust lawsuits for strategic purposes, in particular to prevent procompetitive efficiency-improvement by rival firms. Our main result is that, ceteris paribus, smaller firms in more fragmented industries are more likely to use the antitrust laws strategically than larger firms in concentrated industries.
JEL Classification: L44, K21, H11
Suggested Citation: Suggested Citation