Cartels Costly for Customers
10 Pages Posted: 19 Jun 2017
Date Written: June 18, 2017
This paper describes some major trends in cartelization of markets worldwide with a special emphasis on the economic injuries being generated by illegal collusion. Known affected commerce by international cartels discovered during 1990-2014 exceeds a nominal $13.6 trillion worldwide. Projections to adjust for unknown affected commerce raise the total to the $64 to $189 trillion range. Overcharges cause price-fixing injuries in the $12 to $37 trillion range. Global antitrust fines announced for discovered international cartels were less than 1% of the economic injuries sustained.
Keywords: cartels, collusion, affected sales, overcharges, antitrust
JEL Classification: D4, K0, K21, L1, L4, L11, L12, L13, K14, L41, L44, N60
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