Object-Oriented Bayesian Networks for a Decision Support System

We study an economic decision problem where the actors are two rms and the Antitrust Authority whose main task is to monitor and prevent rms potential anti-competitive behaviour. The Antitrust Au- thority's decision process is modelled using a Bayesian network whose relational structure and parameters are estimated from data provided by the Authority itself. Several economic variables in uencing this de- cision process are included in the model. We analyse how monitoring by the Antitrust Authority aects rms cooperation strategies. These are modelled as a repeated prisoners dilemma using object-oriented Bayesian networks, thus enabling integration of rms decision process and external market information.