NMa Working Paper - The Economic Detection Instrument of the Netherlands Competition Authority
This paper discusses the economic detection instrument of the Netherlands Competition Authority: the Competition Index (CI). This pro-active instrument aims to detect industries that are prone to anticompetitive behaviour. The paper firstly discusses the CI methodology. Nine economic indicators are used as a basis for this screening approach. The analysis is applied on the Dutch economy, which is divided into 500 industries for this purpose. The second part of the paper presents the results for the Dutch economy. Finally, various tests to assess the methodology are executed, as well as a sensitivity check. From these tests, we conclude that the CI produces rather robust results. The CI serves as an additional instrument to complaints, signals, whistleblowers, etc. which may be used to find possible problematic cases regarding anticompetitive behaviour.