Paris

Exchange of information: Can exchange be pro-competitive?

Law & Economics breakfast organized by Concurrences in partnership with McDermott Will & Emery and Compass Lexecon.

THE ECONOMIST’S POINT OF VIEW

David Sevy (Vice-President Compass Lexecon)

The competitive analysis of information exchanges between companies is one of the most debated topics among economic and competition law practitioners. The economic literature, which has focused on the various mechanisms by which information exchanges can affect the competitive process, does not provide much general information that can be directly applied in a legal framework.

The results of the analysis of information exchanges within an oligopoly in a static framework depend in fine detail on the characteristics of the market under consideration: the type of competition (in price or quantity), the form of uncertainty (on demand or on firms’ costs), the nature of the information exchanged (prices or quantities, past or future, etc.) are all determining factors in the economic assessment of the effects of the information exchanges. In a dynamic framework, this literature produces results that are relatively clearer and more robust, but which are consistent with a presumption of collusive behaviour.

Photos © Léo-Paul Ridet.

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Speakers

  • ESSEC Business School (Cergy)
  • Compass Lexecon (Paris)
  • McDermott Will & Emery (Paris)
  • McDermott Will & Emery (Paris)
  • University Aix-Marseille