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...

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...

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...

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 The monopolistic telephone and spectrumscarcity environments of 1934 have been replaced by dynamic, intermodal competition across broadband,...

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...

Competition authorities impose substantial penalties on firms engaging in illegal pricefixing. We examine how basing cartel fines on either revenue, profit, or price overcharge influences cartel and market prices, as well as cartel incidence and stability. In an infinitely repeated Bertrand...

Efficient institutions matter in promoting Global Value Chains (GVCs) participation since they help reduce transaction costs for firms that engage in trade. Competition policy is considered an important dimension of these institutions. This paper investigates whether competition policy matters...

This paper investigates the effects of competition laws and regulations on manufacturing firms productivity in Latin American countries (LACs), addressing a gap in existing research. Leveraging firm-level panel data from the World Bank Enterprise Surveys across 14 LAC economies and competition...

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...

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...

A common approach to markets with adverse selection is to regulate competition to minimize inefficiencies, while preserving consumer choice among firms. We study the role of procurement auctions - leading to sole provision by the winning firm - as an alternative market design. Relative to...

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...

Dieses Positionspapier entstand im Rahmen der Tagung "Wettbewerb als geniales Entmachtungsinstrument - In Gedenken an Prof. Dr. Heike Schweitzer, LL.M. (Yale)", der Stiftung Marktwirtschaft, die am 11. Juni 2025 in Berlin stattfand. Es formuliert zentrale Handlungsempfehlungen, die sich an den...

We analyze vertical integration in auction markets using a symmetric independent private-values model where the auctioneer invests in the auctioned object's quality. We find that the auctioneer invests more after integration. The integrated bidder enjoys a bidding advantage over other bidders....

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...

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.

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...

In this report we study the implementation and effectiveness of the antitrust remedies that the European Commission imposed over the last 20 years pursuant to Article 7 (prohibition decisions) and Article 9 (commitments decisions) of Regulation 1/2003. To this end, we collect evidence from a...

In this report we study the implementation and effectiveness of the antitrust remedies that the European Commission imposed over the last 20 years pursuant to Article 7 (prohibition decisions) and Article 9 (commitments decisions) of Regulation 1/2003. To this end, we collect evidence from a...

What is EU competition policy and how does it relate to citizens and consumers? Competition means that businesses are under constant pressure to be better than their market competitors in order to win a larger share of customers. Competition stimulates innovation and technical progress, and this...

What is EU competition policy and how does it relate to citizens and consumers? Competition means that businesses are under constant pressure to be better than their market competitors in order to win a larger share of customers. Competition stimulates innovation and technical progress, and this...