Download this Paper Open PDF in Browser

About Cartel Overcharges: Kroes is Correct

15 Pages Posted: 19 May 2010  

John M. Connor

American Antitrust Institute (AAI)

Date Written: February 1, 2010

Abstract

An article by Ehmer and Rosati (ER) in expresses dissatisfaction with a view expressed in a speech by Commissioner Neelie Kroes. As a justification for the high cartel fines imposed on cartels during her administration, she contends that most economic research indicates that the average cartel overcharge is likely to be 20% to 25%. This article defends Kroes’ assertion about the typicality of such overcharges. I argue in some detail that ER have it wrong. The overwhelming empirical evidence on cartel overcharges is reliable, scientific, and biased downward.

Suggested Citation

Connor, John M., About Cartel Overcharges: Kroes is Correct (February 1, 2010). Available at SSRN: https://ssrn.com/abstract=1610283 or http://dx.doi.org/10.2139/ssrn.1610283

John M. Connor (Contact Author)

American Antitrust Institute (AAI) ( email )

1730 Rhode Island Avenue, NW
Suite 1100
Washington, DC 20036
United States
202-536-3408 (Phone)

HOME PAGE: http://www.antitrustinstitute.com

Paper statistics

Downloads
251
Rank
102,542
Abstract Views
837