Cartel Overcharges and Optimal Cartel Fines
16 Pages Posted: 20 Oct 2008
There are 2 versions of this paper
Cartel Overcharges and Optimal Cartel Fines
Cartel Overcharges and Optimal Cartel Fines
Date Written: October 16, 2008
Abstract
This chapter examines how high cartels raise prices on average and what this should mean for the current criminal fine levels in the U.S. Sentencing Guidelines. We utilize two distinct data sets (economic and other studies, and verdicts in final cartel cases) and find that cartels have caused average overcharges in the range of 31 to 49 percent and median overcharges in the range of 22 to 25 percent of affected commerce. We conclude that the current Sentencing Commission presumption that cartels overcharge on average by 10 percent is much too low, and the current levels of cartel penalties should be increased significantly.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Leniency Programs and Cartel Prosecution
By Michele Polo and Massimo Motta
-
Cartel Pricing Dynamics in the Presence of an Antitrust Authority
-
Optimal Cartel Pricing in the Presence of an Antitrust Authority