TY - JOUR
T1 - Measuring the rate of return for competition law
AU - Grout, Paul A.
AU - Zalewska, Anna
PY - 2008/3
Y1 - 2008/3
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=42449143467&partnerID=8YFLogxK
UR - http://dx.doi.org/ 10.1093/joclec/nhm027
U2 - 10.1093/joclec/nhm027
DO - 10.1093/joclec/nhm027
M3 - Article
SN - 1744-6414
VL - 4
SP - 155
EP - 176
JO - Journal of Competition Law and Economics
JF - Journal of Competition Law and Economics
IS - 1
ER -