Experiments and Competition Policy

This volume shows what the increasingly important field of experimental economics can bring to the theory and practice of competition policy.

Jeroen Hinloopen (Edited by), Hans-Theo Normann (Afterword by)

9780521493420, Cambridge University Press

Hardback, published 12 March 2009

330 pages
23.4 x 16 x 2 cm, 0.66 kg

'… the volume at hand is best suited for the use as a reference work for scientific study. Not only the available experimental evidence, but also the related theoretical work is covered in a fairly comprehensive and easily accessible manner. … an excellent starting point.' European Competition Law Review

Economists have begun to make much greater use of experimental methods in their research. The award of the Nobel Prize in 2002 to Vernon Smith confirmed that the use of such methods is now seen as an important and credible part of the economist's toolkit. In Experiments and Competition Policy, leading scholars in the field of experimental economics survey the use of experimental methods and show how they can help us to understand firm behaviour in relation to various forms of competition policy. Chapters are organized in terms of the main fields of competition policy - collusion, abusive practices and mergers - and there is also a separate section dealing with auctions and procurement. Written in a clear and non-technical style, this volume is an excellent introduction to what the increasingly important field of experimental economics can bring to the theory and practice of competition policy.

1. Introduction Jeroen Hinloopen and Hans-Theo Normann
Part I: 2. Experimental results on collusion: the role of information and communication Marco A. Haan, Lambert Schoonbeek and Barbara M. Winkel
3. Transparency about past, present and future conduct: experimental evidence on the impact on competitiveness J. Potters
4. Collusion in growing and shrinking markets: experimental evidence from experimental duopolies Klaus Abbink and Jordi Brandts
5. The effect of price ceilings in experimental posted-offer markets Hans-Theo Normann and Dirk Engelmann
Part II: 6. Experiments on abuse of a dominant position Eric van Damme, L. Hancher, Pierre Larouche and Wieland Müller
7. Buyer power Bradley Ruffle
Part III: 8. Experiments on changes in market structure and their effect on performance Lorenz Götte and Armin Schmutzler
9. Mergers in Stackelberg markets: an experimental study Steffen Huck
Part IV: 10. Making uncompetitive auctions competitive: a survey of experiments Theo Offerman and Sandler Onderstal
11. Investment incentives in auctions: an experiment Veronika Grimm, Friederike Mengel, Giovanna Ponti and Lari Arthur Viianto
12. Experiments and the practice of competition policy Jeroen Hinloopen and Hans-Theo Normann
Index.

Subject Areas: Business competition [KJF], Economics of industrial organisation [KCD], Economics [KC]