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When Does a Self-Serving Antitrust Authority Act in Society's Best Interests?

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Author Info
Joseph E. Harrington, Jr.
Abstract

If 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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Paper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 549.

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Date of creation: Jan 2009
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Handle: RePEc:jhu:papers:549

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  1. Besanko, David & Spulber, Daniel F, 1989. "Antitrust Enforcement under Asymmetric Information," Economic Journal, Royal Economic Society, vol. 99(396), pages 408-25, June. [Downloadable!] (restricted)
  2. Myong-Hun Chang & Joseph E. Harrington, Jr., 2008. "The Impact of a Corporate Leniency Program on Antitrust Enforcement and Cartelization," Economics Working Paper Archive 548, The Johns Hopkins University,Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-25.

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