Optimal Cartel Pricing in the Presence of an Antitrust Authority
Loading...
Penn collection
Business Economics and Public Policy Papers
Degree type
Discipline
Subject
Business
Economics
Public Affairs, Public Policy and Public Administration
Economics
Public Affairs, Public Policy and Public Administration
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Harrington, Joseph E
Contributor
Abstract
The dynamic behavior of a price-fixing cartel is explored when it is concerned about creating suspicions that a cartel has formed. Consistent with preceding static theories, the cartel's steady-state price is decreasing in the damage multiple and the probability of detection. However, contrary to those theories, it is independent of the level of fixed fines. It is also shown that the cartel prices higher when a more competitive benchmark price is used in calculating damages.
Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Publication date
2005-02-01
Journal title
International Economic Review