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Sectoral Regulators and the Competition Authority: Which Relationship is Best?

Author

Listed:
  • Pedro P. Barros

    (Nova School of Business and Economics
    CEPR)

  • Steffen H. Hoernig

    (Nova School of Business and Economics)

Abstract

We consider the interplay between regulatory agencies with overlapping competencies: for example, a competition authority and a sectoral regulator. This reflects the current situation in the European Union and in the US. We analyse how authorities’ incentives to act are affected if they can decide independently, or must follow each others’ opinions, respectively, and consider how this relationship performs in the presence of institutional biases and lobbying efforts. A higher likelihood of closing a case tends to be achieved when the authorities act independently of each other: the probability of coming to a decision is higher, and decisions are less vulnerable to lobbying.

Suggested Citation

  • Pedro P. Barros & Steffen H. Hoernig, 2018. "Sectoral Regulators and the Competition Authority: Which Relationship is Best?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(3), pages 451-472, May.
    • Handle: RePEc:kap:revind:v:52:y:2018:i:3:d:10.1007_s11151-017-9582-z
    DOI: 10.1007/s11151-017-9582-z
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    Cited by:

    1. Stefano Barbieri & Kai A. Konrad, 2021. "Overzealous Rule Makers," Journal of Law and Economics, University of Chicago Press, vol. 64(2), pages 341-365.
    2. Thibaud Vergé & Estelle Malavolti-Grimal & Frédéric Loss, 2007. "Comment décentraliser la politique européenne de concurrence ?," Économie et Prévision, Programme National Persée, vol. 178(2), pages 115-124.
    3. Pedro P. Barros & Steffen Hoernig & Tore Nilssen, 2015. "Transversal Agency and Crowding Out," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(4), pages 589-608, December.
    4. Barros, Pedro P. & Hoernig, Steffen & Nilssen, Tore, 2008. "Keeping Both Eyes Wide Open: The Life of a Competitive Authority among Sectoral Regulators," Memorandum 12/2008, Oslo University, Department of Economics.
    5. International Monetary Fund, 2007. "Italy—Assessing Competition and Efficiency in the Banking System," IMF Working Papers 2007/026, International Monetary Fund.
    6. Vasconcelos, Helder & Fumagalli, Eileen, 2006. "Cross-Border Merger Waves," CEPR Discussion Papers 5601, C.E.P.R. Discussion Papers.
    7. Antonio Estache & L. Wren-Lewis, 2008. "Towards a Theory of Regulation for Developing Countries: Following Laffont's Lead," Working Papers ECARES 2008_018, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    Competition authority; Sectoral regulators; Institutional relationship; Strategic substitutes and Complements; Lobbying;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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