The Deterrence of Anticompetitive Behavior: A New Approach Based on the Diffusion of Information About Competition Policy Interventions

The deterrent effects of competition policy interventions largely outweigh the direct effects of such market interventions. The present paper associates deterrence with the diffusion of information about the competition authority’s interventions to market players. By detecting and stopping anticompetitive behavior, the competition authority sends a signal to market players, which is diffused primarily in the sector directly affected by the intervention. Interactions between market players ampl