Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, January 13, 2009

Ex Post Regulation Facilitates Collusion

Posted by D. Daniel Sokol

Patrick Beschorner, Centre for European Economic Research, argues that Ex Post Regulation Facilitates Collusion.

ABSTRACT: Under ex ante access regulation entrants often claim that access fees are excessive. I show that this is only the case if further entry is admitted. If the entrant is protected from further entry it would agree with the incumbent upon a strictly positive access fee which may exceed the efficient level. Ex post regulation facilitates this type of collusion and should be abandoned.

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