Competition Law, Antitrust Immunity and Profits

A Dynamic Panel Analysis

E. Brouwer, F.C. Ozbugday

Research output: Working paperDiscussion paperOther research output

Abstract

This paper tests whether the transition from the old Economic Competition Act, which was based on the so-called "abuse system", to the new Competition Act, which was based on "prohibition system", in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions.
Original languageEnglish
Place of PublicationTilburg
PublisherTILEC
Volume2011-022
Publication statusPublished - 2011

Publication series

NameTILEC Discussion Paper
Volume2011-022

Fingerprint

Immunity
Panel analysis
Dynamic panel
Competition law
Profit
Price-cost margin
Industry
The Netherlands
Manufacturing industries
Markups
Economics
Abuse
Prohibition

Keywords

  • Price-cost margin
  • Competition law
  • Antitrust immunity
  • Antitrust enforcement
  • Dynamic panel data model
  • the Netherlands

Cite this

Brouwer, E., & Ozbugday, F. C. (2011). Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis. (TILEC Discussion Paper; Vol. 2011-022). Tilburg: TILEC.
Brouwer, E. ; Ozbugday, F.C. / Competition Law, Antitrust Immunity and Profits : A Dynamic Panel Analysis. Tilburg : TILEC, 2011. (TILEC Discussion Paper).
@techreport{b147e65859614422a693e181cda6ed73,
title = "Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis",
abstract = "This paper tests whether the transition from the old Economic Competition Act, which was based on the so-called {"}abuse system{"}, to the new Competition Act, which was based on {"}prohibition system{"}, in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions.",
keywords = "Price-cost margin, Competition law, Antitrust immunity, Antitrust enforcement, Dynamic panel data model, the Netherlands",
author = "E. Brouwer and F.C. Ozbugday",
year = "2011",
language = "English",
volume = "2011-022",
series = "TILEC Discussion Paper",
publisher = "TILEC",
type = "WorkingPaper",
institution = "TILEC",

}

Brouwer, E & Ozbugday, FC 2011 'Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis' TILEC Discussion Paper, vol. 2011-022, TILEC, Tilburg.

Competition Law, Antitrust Immunity and Profits : A Dynamic Panel Analysis. / Brouwer, E.; Ozbugday, F.C.

Tilburg : TILEC, 2011. (TILEC Discussion Paper; Vol. 2011-022).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Competition Law, Antitrust Immunity and Profits

T2 - A Dynamic Panel Analysis

AU - Brouwer, E.

AU - Ozbugday, F.C.

PY - 2011

Y1 - 2011

N2 - This paper tests whether the transition from the old Economic Competition Act, which was based on the so-called "abuse system", to the new Competition Act, which was based on "prohibition system", in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions.

AB - This paper tests whether the transition from the old Economic Competition Act, which was based on the so-called "abuse system", to the new Competition Act, which was based on "prohibition system", in the Netherlands had an impact on the price-cost margins in manufacturing industries during the period 1993-2007. The paper further investigates if the price-cost margins were higher in industries where temporary antitrust immunity was granted for subset of firms that engaged in concerted practices. The results indicate that the change in the competition law in the Netherlands had a very small and negative, yet statistically insignificant deterrent effect on the price-cost margins. Elsewhere, markups were higher in industries in which temporary antitrust immunity was granted for some class of coordinated actions.

KW - Price-cost margin

KW - Competition law

KW - Antitrust immunity

KW - Antitrust enforcement

KW - Dynamic panel data model

KW - the Netherlands

M3 - Discussion paper

VL - 2011-022

T3 - TILEC Discussion Paper

BT - Competition Law, Antitrust Immunity and Profits

PB - TILEC

CY - Tilburg

ER -

Brouwer E, Ozbugday FC. Competition Law, Antitrust Immunity and Profits: A Dynamic Panel Analysis. Tilburg: TILEC. 2011. (TILEC Discussion Paper).