Global Cartels Redux: The Amino Acid Lysine Antitrust Litigation (1996)

Abstract

This paper presents an updated narrative of the history of the global lysine cartel and the legal consequences for its members in the United States. The story focuses especially upon the role of economists in calculating the size of overcharges and how the estimates can affect the decisions of plaintiffs and defendants in private treble-damages litigation. It concludes with ruminations about the rationality of participating in price-fixing conspiracies and the difficulty of achieving optimal deterrence of international cartels.

Keywords: Cartel, collusion, price fixing, antitrust, optimal deterrence, chemicals, remedies

JEL Classification: L41, L44, L65, L11, L13, N60, K21, K14