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Antitrust Fines: Experiences from China

Author

Listed:
  • Ran Jing

    (University of International Business and Economics, School of International Trade and Economics)

  • Jiong Gong

    (University of International Business and Economics, School of International Trade and Economics)

  • Fang Yi

    (Beijing Technology and Business University)

Abstract

Antitrust fines are usually set for restitution and to dissuade potential offenders. The seriousness and duration of the offense usually determines the size of the fine imposed. Aggravating circumstances can also influence the size of the fine, while attenuating factors result in leniency. Economists have developed the “optimal fine” theory as a guiding principle in setting antitrust fines. Using a sample of fines that were imposed on 76 companies in China, we find that actual fines are strongly correlated with what the optimal fine theory predicts, while the price overcharge ratio appears quite moderate: at only 4.9% on average.

Suggested Citation

  • Ran Jing & Jiong Gong & Fang Yi, 2020. "Antitrust Fines: Experiences from China," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 167-187, August.
    • Handle: RePEc:kap:revind:v:57:y:2020:i:1:d:10.1007_s11151-019-09743-0
    DOI: 10.1007/s11151-019-09743-0
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    References listed on IDEAS

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    Cited by:

    1. Aditya Bhattacharjea & Oindrila De, 2021. "India’s Cartel Penalty Practices, Optimal Restitution and Deterrence," IEG Working Papers 424, Institute of Economic Growth.

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    More about this item

    Keywords

    Antitrust; Competition; China; Fine;
    All these keywords.

    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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