ORIENTED 
 BAYESIAN 
 NETWORKS 
 FOR 
 A 
 DECISION 
 SUPPORT 
 SYSTEM 


We study an economic decision problem where the actors are two firms and the Antitrust Authority whose main task is to monitor and prevent firms potential anti-competitive behaviour. The Antitrust Authority’s decision process is modelled using a Bayesian network whose relational structure and parameters are estimated from data provided by the Authority itself. Several economic variables influencing this decision process are included in the model. We analyse how monitoring by the Antitrust Authority affects firms cooperation strategies. These are modelled as a repeated prisoners dilemma using object-oriented Bayesian networks, thus enabling integration of firms decision process and external market information. JEL Classification: C440, C730, L400, C110, D810, D830, L130.

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