Factors influencing the magnitude of cartel overcharges: An empirical analysis of food-industry cartels
Using overcharge estimates for 395 cartel episodes from the 18 th to the 21 st century, we evaluate the impact of cartel characteristics on the size of overcharges imposed by cartels across several geographic regions and antitrust law regimes. The results of our study have important policy implications. We find that the average overcharge imposed by cartels in our sample is 19 percent with the median of 16 percent of the selling price. Food industry cartels achieve lower overcharges than domestic cartels. Longer cartel episodes generate higher levels of overcharges. Cartels that were found or pled guilty achieve approximately the same levels of overcharges as legal cartels. [JEL classifications: L1, L2, L4, L6]. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 17-33, 2007.
Volume (Year): 23 (2007)
Issue (Month): 1 ()
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- John M. Connor, 2004.
"Global Antitrust Prosecutions of Modern International Cartels,"
Journal of Industry, Competition and Trade,
Springer, vol. 4(3), pages 239-267, 09.
- John M. Connor, 2004. "Global Antitrust Prosecutions Of Modern International Cartels," Working Papers 04-15, Purdue University, College of Agriculture, Department of Agricultural Economics.
- Dick, Andrew R, 1996. "When Are Cartels Stable Contracts?," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 241-283, April.
- John M. Connor, 1998. "The global citric acid conspiracy: Legal-economic lessons," Agribusiness, John Wiley & Sons, Ltd., vol. 14(6), pages 435-452. Full references (including those not matched with items on IDEAS)
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