Discussion Papers

Christian Growitsch, Margarethe Rammerstorfer

On the competitive effects of the German Entry Exit System

No. 303 / February 2008


This study „On the competitive effects of the German Entry Exit System “ analyzes the impact of the new established entry-exit-system in Germany on the market power of market participants and the liquidity of the upcoming secondary markets. It discusses the impact of this system on certain market aspects and analyzes expected further developments of the so called 2-Vertragsmodell (entry-exit-system). The first part of the study covers advantages and disadvantages of the system in general and highlights possible procedures for further analysis. In this context the UK system is introduced as Best-Practice benchmark model.

Due to several changes within the first year after the implementation of the entry-exit- Model in Germany a complete and final analysis is not yet possible. Consequently, our analysis focuses on providing an overview of the existing system, upcoming secondary markets and expected developments.

Also, it is yet too early to test for several econometric hypotheses (such as cointegrated markets and no arbitrage conditions). Therefore, we discuss in section five methodologies and techniques that would allow an easy and comfortable implementation as soon as the required data for a quantitative economic assessment is available.

[only a german version available]

Discussion Paper is available for download.

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