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Signaling through public antitrust enforcement: A Generalization

Author

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  • Madhuparna Ganguly

    (Indira Gandhi Institute of Development Research)

  • Rupayan Pal

    (Indira Gandhi Institute of Development Research)

Abstract

This note shows that the argument of Saljanin(2017) [Saljanin, 2017. "Signaling through public antitrust enforcement" , Economics Letters 169, 4 - 6] that public antitrust enforcement complements private investment is robust to allowing public investment in antitrust enforcement to be productive. However, unlike as in the case of unproductive public investment, over investment in public antitrust enforcement does not necessarily signal that the government is pro-competition: in pooling equilibria either only the anti-competition government or both types of government over invests, whereas in the separating equilibrium only the pro-competition government over invests.

Suggested Citation

  • Madhuparna Ganguly & Rupayan Pal, 2018. "Signaling through public antitrust enforcement: A Generalization," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-015, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2018-015
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    Keywords

    Private and public enforcement; Signaling; Antitrust;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • K1 - Law and Economics - - Basic Areas of Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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