Collusion: Is it Really that Bad?

20 Pages Posted: 17 Jul 2017

Date Written: July 10, 2017

Abstract

Collusion, particularly collusion is in the form of hardcore cartel behavior, is the worst antitrust offense of all. People engaging in such conduct should be punished severely. That is the consensus among antitrust officials. I argue against, that collusion is not that bad as antitrust officials want to make us believe. Colluders are just people of the same trade trying to avoid the race to the bottom which competition implies for them. Moreover, they do it in a way that is hard to prohibit in a free society under a rule of law. In my judgement, the prohibition of horizontal agreements in modern antitrust regimes and, even more so, the way it is enforced, generate substantial legal uncertainty. That way, they undermine the credibility of the institutions and bend the rule of law to its breaking point.

Keywords: Antitrust, collusion, freedom, rule of law

JEL Classification: B12, K21, L41

Suggested Citation

Ten Kate, Adriaan, Collusion: Is it Really that Bad? (July 10, 2017). Available at SSRN: https://ssrn.com/abstract=3000069 or http://dx.doi.org/10.2139/ssrn.3000069

Adriaan Ten Kate (Contact Author)

Independent ( email )

Mexico City
Mexico

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