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The deterrence of collusion by a structural remedy

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  • Harrington, Joseph E.

Abstract

As a penalty for illegal collusion, this paper shows that a structural remedy makes collusion unprofitable when collusion is most stable, and that it can be a greater deterrent than fines or damages.

Suggested Citation

  • Harrington, Joseph E., 2017. "The deterrence of collusion by a structural remedy," Economics Letters, Elsevier, vol. 160(C), pages 78-81.
    • Handle: RePEc:eee:ecolet:v:160:y:2017:i:c:p:78-81
    DOI: 10.1016/j.econlet.2017.09.001
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    References listed on IDEAS

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    1. Yuliy Sannikov & Andrzej Skrzypacz, 2007. "Impossibility of Collusion under Imperfect Monitoring with Flexible Production," American Economic Review, American Economic Association, vol. 97(5), pages 1794-1823, December.
    2. Joseph E. Harrington, 2005. "Optimal Cartel Pricing In The Presence Of An Antitrust Authority," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 145-169, February.
    3. Joseph E. Harrington, Jr., 2004. "Cartel Pricing Dynamics in the Presence of an Antitrust Authority," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 651-673, Winter.
    4. Katsoulacos, Yannis & Motchenkova, Evgenia & Ulph, David, 2015. "Penalizing cartels: The case for basing penalties on price overcharge," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 70-80.
    5. Harrington, Joseph E., 2014. "Penalties and the deterrence of unlawful collusion," Economics Letters, Elsevier, vol. 124(1), pages 33-36.
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    Cited by:

    1. Ying Fan & Charles Ka Yui Leung & Zan Yang, 2022. "Financial conditions, local competition, and local market leaders: The case of real estate developers," Pacific Economic Review, Wiley Blackwell, vol. 27(2), pages 131-193, May.

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    More about this item

    Keywords

    Collusion; Antitrust; Competition law; Structural remedy;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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