The Contribution of Management Studies to Understanding Firm Behaviour and Competition Law

The Contribution of Management Studies to Understanding Firm Behaviour and Competition Law Shilpi Bhattacharya (Erasmus University Rotterdam) & Roger Van den Bergh (Erasmus University Rotterdam)

Abstract: Notwithstanding criticisms, behavioural economics has found a place in competition policy discussions. This paper explores how contributions from the field of management studies may strengthen behavioural theories of the firm and competition law. Various linkages may be drawn between management studies and the behavioural theory of the firm, which can inform existing debates within behavioural antitrust. Both disciplines relate a firm’s internal processes to its competitive position in the market. Further, both disciplines emphasize the cognitive limitations of managers and the effect of organizational structures on firm behaviour. The empirical findings of management studies supplement behavioural theories of the firm. This paper examines the insights from management studies and behavioural theories of the firm with the objective of determining whether these insights can lead to a better understanding of firm behaviour, which in turn may be able to inform the normative debate in competition law.