This paper develops a game-theoretic model to study how exclusionary contracts affect firms' incentives to invest in innovation. Several symmetric sellers compete to supply an identical product to a set of buyers, and each seller can invest in R&D to develop a higher-quality version of the...

Business dynamism has been slowing globally over the last several decades. In a recent study, Akcigit and Ates (2023) examine the relative importance of different channels behind this development and highlight weakened knowledge diffusion from the technology frontier to followers as a dominant...

This paper argues that the Federal Communications Commission (FCC) has outlived the economic and technological conditions that justified its creation. The monopolistic telephone and spectrumscarcity environments of 1934 have been replaced by dynamic, intermodal competition across broadband,...

Aufgrund stark gestiegener Stromkosten möchte die deutsche Bundesregierung ab 2026 mit dem Industriestrompreis energieintensive Branchen entlasten, indem bis zu 50 Prozent ihres Verbrauchs auf 50 Prozent des Großhandelspreises (min. 50 €/ MWh) gedeckelt werden. Dieser reiht sich in eine...

Business dynamism has been slowing globally over the last several decades. In a recent study, Akcigit and Ates (2023) examine the relative importance of different channels behind this development and highlight weakened knowledge diffusion from the technology frontier to followers as a dominant...

Purpose: The paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil. Design/methodology/approach: With access to matched employer-employee data from Brazil, we first characterized the evolution of the local labor market concentration...

This study constructs a model of exclusive-offer competition between two existing up-stream firms. Under exclusive-offer competition, the upstream firm's profit depends on the rival's exclusive offer. If the rival makes an exclusive offer acceptable for the downstream firm, the upstream firm is...

Although citizens value competitive markets and support small businesses, we observe substantial variation in market concentration. Why do politicians abstain from taking action to reduce concentration? We propose an often overlooked political benefit to concentrated markets: When concentration...

Utilizing Connor's International Cartel Database and employing difference-in-differences methodology, we find that market concentration, the number of buyers and cartel duration have significant impacts on cartel overcharges. We also find that the European Commission's 2006 guidelines on the...

Trade conflicts, geopolitical tensions, digital disruption, and the climate crisis pose major challenges for the European Union (EU) and its member states. As called for in the Draghi Report, industrial policy measures can increase competitiveness, strengthen resilience, and facilitate the twin...

Submarine cables enable international connectivity and are essential for high- speed internet access. This paper examines their impact on internet access price, focusing on price reductions driven by cost savings and competition intensity. Using a dataset of submarine cable capacity and internet...

The recent regulatory shift by competition and antitrust authorities-permitting limited industry collaboration on sustainability-related investments to better align markets with broader environmental and social objectives-signals a reconsideration of competition as a mechanism for advancing...

The Illumina/Grail case, which significantly rejected the EU Commission's wide interpretation of its powers of accepting a referral of a merger that did not meet the national merger control thresholds of the referring Member State, introduced changes in the EU about concentrations (Article 22 of...

Kenya's monetary and external policy environment is solid; however, its fiscal outlook places the country at a crossroads. Fiscal slippage persisted in FY2024-25 with the deficit widening to 5.9 percent of gross domestic product (GDP), compared to the revised budget target of 4.3 percent. The...

This report examines two pivotal dimensions of the competitive process: the dynamics of market competition in developing economies and the role of government interventions in strengthening market competition, to provide updated policy recommendations. Chapter 1 presents stylized facts on the...

This study constructs a model of exclusive-offer competition between two existing up-stream firms. Under exclusive-offer competition, the upstream firm's profit depends on the rival's exclusive offer. If the rival makes an exclusive offer acceptable for the downstream firm, the upstream firm is...

The regulatory shift by competition and antitrust authorities, allowing limited industry collusion in sustainability-related investments to align markets with broader environmental and social objectives, suggests a re-evaluation of competition as a mechanism for promoting collective welfare....

This paper examines the impact of two interventions by Colombia's competition authority to enforce competition in the sugar market on firm performance in downstream sectors. Using an exogenous identification strategy, the analysis finds that following the competition authority's intervention...

Cloud computing underpins digital transformation and is essential for unlocking the benefits of artificial intelligence (AI), automation, and scalable digital services. Yet Europe continues to lag behind global peers in both cloud and AI adoption. This underperformance is not merely...

The Handbook on EU Competition Law - Rules Applicable to Merger Control gives an overview about EU legislation applicable in the field of Merger Control. The new 2010 edition includes the changes introduced by the Lisbon Treaty.

For decades, industrial policy and competition policy have been viewed as inherently conflicting, particularly where state intervention may distort markets. However, the current era of geopolitical uncertainty, technological transformation and fragile global supply chains calls for a rethinking...

It has been suggested that an intensified trade war between China and the US could reduce CO2 emissions associated with exports. We develop an export-greenfield-endogenous merger model, showing that significantly increased tariffs can enable domestic firms to undertake entry-deterring...

A broad empirical literature examines the impact of corporate taxes on firms' investment, location, and tax avoidance behaviour. Other corporate adjustment margins have received little attention. In this paper, we use administrative customs and tax return data from South Africa to demonstrate...

The automotive industry is undergoing a fundamental transformation driven by digitization, enabling original equipment manufacturers (OEMs) to exert increasing control over vehicle functions, data, and - consequently - aftersales markets. Despite high relevance for consumers, regulatory scrutiny...

Economic downturns and geopolitical tensions fuel protectionism, leading to trade barriers and competition policy manipulation to restrict FDI deemed harmful to national interests and favor domestic firms. National and international reforms are essential. Given challenges in global cooperation,...