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Quantifying The Deterrent Effect Of Anticartel Enforcement

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  • Stephen Davies
  • Franco Mariuzzo
  • Peter L. Ormosi

Abstract

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 H11, K21, L44)

Suggested Citation

  • Stephen Davies & Franco Mariuzzo & Peter L. Ormosi, 2018. "Quantifying The Deterrent Effect Of Anticartel Enforcement," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 1933-1949, October.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:4:p:1933-1949
    DOI: 10.1111/ecin.12574
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    References listed on IDEAS

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    Cited by:

    1. Bos, Iwan & Davies, Stephen & Harrington, Joseph E. & Ormosi, Peter L., 2018. "Does enforcement deter cartels? A tale of two tails," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 372-405.

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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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