Quantifying the Deterrent Effect of Anticartel Enforcement
17 Pages Posted: 26 Sep 2018
Date Written: October 2018
This paper presents a rare attempt to quantify the deterrent effect of anticartel policy. It develops a conceptual framework, which establishes the sort of information necessary for such quantification. This is then illustrated and calibrated by drawing upon existing literatures and using evidence from legal cartels to approximate what would be observed absent policy. Measuring impact by the proportion of all potential harm that is deterred, our best estimate is two‐thirds and, even on conservative assumptions, at least half of all harms (or seven times the detected harm) is deterred.
JEL Classification: H11, K21, L44
Suggested Citation: Suggested Citation