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European Competition Policy Modernization: From Notification to Legal Exception

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Date
2008-01
Dewey
Microéconomie
Sujet
Politique de la concurrence; Competition policy; Imperfect audit
JEL code
D.D8.D80; L.L4.L40
Journal issue
European Economic Review
Volume
52
Number
1
Publication date
01-2008
Article pages
77–98
Publisher
International Arts and Sciences Press
DOI
http://dx.doi.org/10.1016/j.euroecorev.2007.02.001
URI
https://basepub.dauphine.fr/handle/123456789/15385
Collections
  • LEDa : Publications
Metadata
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Author
Loss, Frédéric
status unknown
Malavolti-Grimal, Estelle
164869 ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien [LEEA]
744 Groupe de recherche en économie mathématique et quantitative [GREMAQ]
Vergé, Thibaud
23809 CREST-LEI
Berges-Sennou, Fabian
744 Groupe de recherche en économie mathématique et quantitative [GREMAQ]
Type
Article accepté pour publication ou publié
Abstract (EN)
Council Regulation (EC) 1/2003 came into force in May 2004 and replaced the mandatory notification of agreements by a regime of ex post monitoring. This paper shows that ex post monitoring is the optimal audit regime when the competition authority's probability of error is low. On the other hand, the notification system becomes optimal when the competition authority's probability of error is high. The paper also shows that block exemptions and black list (regimes of per se (il)legality) should be implemented when the agreements’ expected welfare impact is very high and very low, respectively.

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