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Relative Responsibility for Cartel Damages

Author

Listed:
  • Stefan Napel
  • Dominik Welter

Abstract

Cartel members are liable jointly and severally: any infringing firm may be litigated and forced to compensate victims on behalf of all members. EU law stipulates that co-infringers must pay internal redress in proportion to "relative responsibility for the harm caused." We suggest to quantify this by invoking basic proportioning axioms and requiring that redress payments reflect causal links between actions and damages. This calls for application of the Shapley value. We prove that even symmetric firms may bear unequal responsibility for individual harm, characterize proportionings for linear market environments, and show that market shares typically fail to reflect relative responsibilities.

Suggested Citation

  • Stefan Napel & Dominik Welter, 2022. "Relative Responsibility for Cartel Damages," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 178(3), pages 231-257.
    • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2022-0013
    DOI: 10.1628/jite-2022-0013
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    Citations

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    Cited by:

    1. Goerlach, Joseph-Simon & Motz, Nicolas, 2024. "A General Measure of Bargaining Power for Non-cooperative Games," IZA Discussion Papers 16809, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    collusion; damageproportioning; Shapleyvalue; relativeresponsibility; jointliability;
    All these keywords.

    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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