When Does a Self-Serving Antitrust Authority Act in Society's Best Interests?
AbstractIf an antitrust authority chooses policies to maximize the number of successfully prosecuted cartels, when do those policies also serve to minimize the number of cartels that form? When the detection and prosecution of cartels is inherently difficult, we find that an antitrust authority¡¯s policies minimize the number of cartels, as is socially desirable. But when the detection and prosecution of cartels is not difficult, an antitrust authority is not aggressive enough in that it prosecutes too few cartel cases.
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Bibliographic InfoPaper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 549.
Date of creation: Jan 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-24 (All new papers)
- NEP-COM-2009-01-24 (Industrial Competition)
- NEP-REG-2009-01-24 (Regulation)
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