Ex post evaluation of competition policy enforcement. What can we learn from the literature and from the experience of Competition Authorities?

Summary:

Ex post economic evaluation of competition policy considers both micro and macroeconomic effects, mainly in terms of prices, consumer benefits and growth. Over the past decade competition authorities (CAs) and academic researchers have become increasingly interested in conducting ex post economic evaluations of their interventions. Robust ex post evaluations allow convincing demonstrations of the gains of competition policy in terms of better functioning markets and increased consumer welfare. Moreover, they support enforcement practice by improving the quality of decisions and regulations.

The empirical research on the microeconomic impact of competition policy shows that the deterrent effects of merger control and antitrust enforcement largely outweigh the costs of maintaining an effective competition regime, and that the stronger enforcement of cartel policies has contributed to a decline in overcharges.

Given this interest in the ex post economic evaluation of competition policy, we have reviewed the academic literature and the experience of CAs in this area. This brief summarises the main conclusions drawn from this review.

Further information:

The Competition Policy Briefs are occasional papers by staff of the Competition Directorate-General of the European Commission about policy issues and key cases.

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ESO Records

Ex-post economic evaluation of competition policy enforcement: A review of the literature https://www.europeansources.info/record/ex-post-economic-evaluation-of-competition-policy-enforcement-a-review-of-the-literature/

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