Two antitrust academics have conducted a study finding that in order for cartel fines to actually act as a deterrent to cartels, they must rise to levels five times of their current levels. John Connor from Purdue University and Robert Lande of the University of Baltimore conducted the study using gathered statistics and previous studies to determine the threshold at which cartel fines would become effective in preventing collusion; according to Connor and Lande, the optimal fine levels would be at 100 percent of a company’s expected profit, up from the current level of 9 to 21 percent of a company’s profit the entity expects to be penalized with. According to authors, regulators catch about 30 percent of all cartels due to limited government resources. The study is entitled “Cartels as Rational Business Strategy: Crime Pays.”
Full Content: Thomson Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI