This article provides a model of two risk-neutral firms that may cooperate to achieve a goal that is potentially illegal. The model assumes enforcement risk and firms that are imperfectly informed about antitrust law enforcement. It is shown that compliance training, which educates the agents...

In 2010, EU member states granted worth yy10.3bn aid to their agricultural sector. Given the requirement to revise the guidelines for state aid in the agricultural sector by the end of 2013, this article presents the legal rules and facts of this topic from an economic point of view. It is shown...

Standard methods for calculating cartel-damage rely on data of prices charged and quantity sold. Such data may not easily be available. In this paper, it is shown that accounting data can be used for computing a lower bound for cartel-damage. Previous literature indicates that economic profits...

This article provides a framework for the analysis of cartel formation. It models the strategic interaction among firms who invest into production capacity, sell a near-homogeneous good, and are subject to unexpected demand shocks with persistence. The firms either compete or collude in prices....

This article analyses the European Commission’s Guidelines on Regional State Aid for 2014–2020 that were passed in late June 2013. The author argues that some elements of these guidelines are neither in line with economic theory nor with related guidelines and communications of the...

Basel II imposes regulatory capital on banks related to the de- fault risk of their credit portfolio. Banks using an internal rating approach compute the regulatory capital from pooled probabilities of default. These pooled probabilities can be calculated by clustering credit borrowers into...

Standard methods for calculating cartel-damages rely on data of prices charged and quantity sold. Such data may not easily be available. In this paper, it is shown that a lower bound for cartel-damages can also be computed from accounting data. In previous literature it is shown that economic...

Basel II imposes regulatory capital on banks related to the default risk of their credit portfolio. Banks using an internal rating approach compute the regulatory capital from pooled probabilities of default. These pooled probabilities can be calculated by clustering credit borrowers into...

The current level of competition in European commercial passenger rail markets is low and empirical data on customer preferences in intramodal competition has hardly been available, yet. Our study raises the knowledge of competition in commercial passenger rail by exploring the determinants of...