Measuring the rate of return for competition law

Paul A. Grout, Anna Zalewska

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper focuses on the application and interpretation of measures of rate of return for competition law. Amongst other results, we analyse how outsourcing and similar arrangements impact the rate of profitability and show that the measurement is more volatile the greater the rate of profit (suggesting that the measures are most problematic when they are most needed). We identify and interpret the outsourcing arrangements that provide the lowest rate of profit and show that these arrangements have a close relationship to net present value. Finally, we provide suggestions to make profitability measures more informative for competition law.
Original languageEnglish
Pages (from-to)155-176
Number of pages23
JournalJournal of Competition Law and Economics
Volume4
Issue number1
DOIs
Publication statusPublished - Mar 2008

    Fingerprint

Cite this