“Capacity Collusion and Overcharge Estimation,” in Review of Industrial Organization (Fagart & Boshoff, 2026)
Most cartel enforcement stories follow a familiar script: competitors agree on price, get caught, the cartel dies, and prices fall back to earth. Except, some cartels never touch price directly: steel producers close blast furnaces, and airlines quietly agree not to add seats. The collusive device is capacity, rather than price. This week in Publications: "Capacity Collusion and Overcharge Estimation," in Review of Industrial Organization (Fagart & Boshoff, 2026). Unlike prices, capacity has memory. Once installed, it survives long after the investment decision that created it. Prof Willem Boshoff (CCLE Co-director) and Dr Thomas Fagart (CCLE Research Associate) argue this changes how cartel damages should be modeled. The authors formalise this with a dynamic model of capacity investment under partial irreversibility, focusing on what it does to prices before, during, and after a cartel operates. Simulating the equilibrium path, they identify three effects: the ramp-up, the wind-down, and the lingering effect. The lingering effect considers capacity changes during the cartel that can permanently redirect the industry's long-run equilibrium path. In this way, the post-collusive market may never fully return to where it would otherwise have settled. Depending on demand conditions, this effect may even persist indefinitely. From a quantitative perspective, the authors show that these dynamics may bias overcharge estimation itself. Both the forecast method and the dummy-variable [...]
The CCLE is Hiring!
The Centre for Competition Law and Economics (CCLE) at Stellenbosch University invites applications for a one-year fixed-term position as Competition Economist, commencing on 1 July 2026. The successful candidate will support the Centre’s research, administrative, media, and stakeholder-engagement activities, with a particular focus on competition policy and applied economics research. The position is well suited to a recent master’s graduate seeking to build experience in a dynamic, policy-relevant academic environment. Applicants must hold a master’s degree in economics. Experience in competition policy, research and data analysis, and digital communications would be advantageous. Closing date: 31 May 2026 Full details and application requirements are set out in the advertisement below.
ERSA Conference: Shaping Digital Competition Policy and Regulation in South Africa
The CCLE was delighted to take part in the ERSA Conference on Shaping Digital Competition Policy and Regulation in South Africa, held on 11–12 December 2025 in Irene, Pretoria. The workshop drew together academics, practitioners, and policymakers for two days of lively discussion on the challenges of regulating digital markets — spanning platform dominance, data governance, mobile money, and merger control. Keynote addresses were delivered by Professor Maarten Pieter Schinkel (University of Amsterdam), James Hodge of the Competition Commission South Africa, and Professor Nicolas Petit of the European University Institute. Professor Willem Boshoff, Katherine Stainton, and Thomas Janisch presented their paper on the removal of price-parity clauses in South African online intermediation platform markets, using the Booking.com settlement as a case study to examine the broader market implications of such regulatory interventions. Professor Boshoff and Katherine also responded to Professor Petit's keynote, drawing on the MIH/WeBuyCars merger to interrogate entry concerns in South African merger control. It was a rich two days of debate and exchange, and a welcome opportunity to engage with the growing community of scholars working on digital competition issues in the South African and African context. We look forward to seeing this work develop further.
Workshop on Data-Related Remedies in Digital Platform Markets
The Centre for Competition Law and Economics (CCLE) and the Brussels Centre for Competition Policy at Vrije Universiteit Brussel were pleased to host the Workshop on Data-Related Remedies in Digital Platform Markets in Stellenbosch on Friday, 14 November. The workshop brought together leading scholars in law and economics, practitioners, and policymakers for discussions on competition in digital platform markets. We are particularly grateful to our keynote speaker, Professor Ioannis Lianos from University College London, for his insightful address on scaling laws and interoperability as foundational elements of the digital economy. The programme featured presentations addressing important questions around data-related remedies, enforcement approaches, and regulatory frameworks in digital markets. Comparative perspectives between different jurisdictions enriched the discussions and highlighted both shared challenges and diverse regulatory responses in digital platform regulation. Thank you to all our presenters who travelled from afar to share their research, and to all participants who contributed to the substantive discussions throughout the day. We now look forward to a special issue of the Journal of Competition Law and Economics, which will feature some of the papers presented at the workshop.
Upcoming Workshop on Data-Related Remedies in Digital Platform Markets
Next week, the Centre for Competition Law and Economics (CCLE) and the Brussels Centre for Competition Policy at Vrije Universiteit Brussel will host a workshop in Stellenbosch bringing together leading scholars in law and economics, practitioners, and policymakers to explore critical approaches to safeguarding competition in digital platform markets. Taking place on Friday, 14 November, we're excited to welcome keynote speaker Professor Ioannis Lianos from University College London, who will address "Scaling Laws and Interoperability as the Backbone of the Digital Economy," as well as our other presenters travelling from afar. The programme features presentations on: Platform dominance and tying practices Data governance and portability Antitrust enforcement in digital markets Comparative regulatory approaches between the EU and South Africa We look forward to the thought-provoking discussions and exchange of ideas ahead!
Registration Open for Workshop on Data-Related Remedies in Digital Platform Markets
The Centre for Competition Law and Economics at Stellenbosch University and the Brussels Centre for Competition Policy at Vrije Universiteit Brussel are pleased to host a workshop on "Data-Related Remedies in Digital Platform Markets." About the Workshop This full-day event brings together leading scholars in law and economics, practitioners, and policymakers to discuss approaches to safeguarding competition in digital platform markets. The workshop will feature paper presentations and a keynote address by Professor Ioannis Lianos of University College London. Event Details Date: Friday, 14 November 2025 Time: 8:30 AM – 5:30 PM Venue: Stellenbosch Institute for Advanced Studies (STIAS), Stellenbosch, South Africa Conference Fee: $250 (PhD students exempt) Registration deadline: 1 November 2025 Interested in attending? Please complete the registration form: https://forms.gle/UkEBwqUQjLKa2kYX7 A conference dinner will be held on the evening of Friday, 14 November. Further details will be provided to registered participants. Contact For questions or further information, please contact: Professor Caroline Buts (caroline.buts@vub.be) Professor Willem Boshoff (wimpie2@sun.ac.za)