Highlights

• We analyze the interaction between colluding firms and a competition authority allocating resources to inspection.
• An increase in demand is associated with tougher enforcement and a lower degree of collusion.
• Increasing competitive pressure is associated with a circular relationship between enforcement and the degree of collusion.
• We simulate the effects of a move from the EU penalty regime to the tougher US standard with treble damages.
• Introducing treble damages will mainly impact on the enforcement intensity and to a lesser extent affect collusion.

Read the full article

Recent publications