TY - JOUR
T1 - How to avoid regulatory antitrust scrutiny
T2 - The behavioral defense
AU - Agnihotri, Arpita
N1 - Publisher Copyright:
© 2015 Kelley School of Business, Indiana University.
PY - 2015/7/1
Y1 - 2015/7/1
N2 - Firms, especially those with high profit margins, are often scrutinized by regulatory authorities that suspect them of anticompetitive practices such as cartel formation. In this article I introduce a behavioral approach of competing that suggests firms with even the highest of margins are actually competing aggressively against each other, rather than colluding as the regulatory authorities might suggest. Firms using the behavioral approach can signal to antitrust authorities that their intent is not to restrain competition. Four mechanisms show this competitive orientation: (1) competitive intensity, (2) competitive complexity, (3) attack imitation, and (4) competitive action speed.
AB - Firms, especially those with high profit margins, are often scrutinized by regulatory authorities that suspect them of anticompetitive practices such as cartel formation. In this article I introduce a behavioral approach of competing that suggests firms with even the highest of margins are actually competing aggressively against each other, rather than colluding as the regulatory authorities might suggest. Firms using the behavioral approach can signal to antitrust authorities that their intent is not to restrain competition. Four mechanisms show this competitive orientation: (1) competitive intensity, (2) competitive complexity, (3) attack imitation, and (4) competitive action speed.
UR - http://www.scopus.com/inward/record.url?scp=84937639545&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84937639545&partnerID=8YFLogxK
U2 - 10.1016/j.bushor.2015.04.002
DO - 10.1016/j.bushor.2015.04.002
M3 - Article
AN - SCOPUS:84937639545
SN - 0007-6813
VL - 58
SP - 441
EP - 447
JO - Business Horizons
JF - Business Horizons
IS - 4
ER -