Mathias Herzing and Jonas Häckner publish in International Review of Law and Economics
The strategic interaction between cartels and anti-trust authorities.
- 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.
Last updated: April 29, 2022
Source: Department of Economics