Four Studies on Antitrust Enforcement and Foreign Investment Activities

Antitrust Enforcement ∗

This article explores the enforcement of those laws intended to promote competitive markets through the prohibition of certain practices such as price-fixing, welfare-reducing mergers, and monopolization. The discovery and prosecution of violations are examined including the role of leniency programs. The determination of penalties is investigated with an assessment of their relationship to opt...

Antitrust Enforcement and Marginal Deterrence

We study antitrust enforcement in which the fine must obey four legal principles: punishments should fit the crime, proportionality, bankruptcy considerations, and minimum fines. We integrate these legal principles into an infinitely-repeated oligopoly model. Bankruptcy considerations ensure abnormal cartel profits. We derive the optimal fine schedule that achieves maximal social welfare under ...

Legal Principles in Antitrust Enforcement

We study antitrust enforcement that channels price-fixing incentives through setting fines and allocating resources to detection activities. Antitrust fines obey four legal principles: punishments should fit the crime, proportionality, bankruptcy considerations, and minimum fines. Bankruptcy considerations limit maximum fines, ensure abnormal cartel profits and impose a challenge for optimal an...

Supplanting Foreign Antitrust

Why should American law supplant, for example, Canada’s or Great Britain’s or Japan’s own determination about how best to protect Canadian or British or Japanese customers from anti-competitive conduct engaged in significant part by Canadian or British or Japanese or other foreign companies?1 Thus asked Justice Breyer in his 2004 opinion in F. Hoffman-La Roche, Ltd. v. Empagran, SA, a case brou...

Firm Productivity and Foreign Direct Investment into Non-Core Activities