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Do States Free Ride in Antitrust Enforcement?

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  • Robert M. Feinberg
  • Thomas A. Husted

Abstract

Recent research has documented a substantial role in antitrust enforcement by U.S. states. While many of the cases litigated involve small local firms, a non-trivial portion encompass multiplestate issues. Some previous literature has investigated whether states engage in free-riding behavior in environmental regulation, and whether governments free ride on private decisions in provision of public goods. In this paper, we analyze a sample of antitrust cases involving crossstate impacts (from the Multi-State Antitrust Database, provided by the National Association of Attorneys General) and explain the determinants of free-riding (which we define as participatingin a case, but not as a lead plaintiff). JEL classification:

Suggested Citation

  • Robert M. Feinberg & Thomas A. Husted, 2011. "Do States Free Ride in Antitrust Enforcement?," Working Papers 2011-07, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:2011-07
    DOI: 10.17606/gvty-2k77
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    References listed on IDEAS

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    1. R. Isaac & James Walker & Susan Thomas, 1984. "Divergent evidence on free riding: An experimental examination of possible explanations," Public Choice, Springer, vol. 43(2), pages 113-149, January.
    2. Robert Feinberg & Kara Reynolds, 2010. "The Determinants of State-Level Antitrust Activity," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 37(3), pages 179-196, November.
    3. Robert M. Feinberg & Thomas A. Husted, 2011. "Patterns Of Establishment Entry And State-Level Antitrust," Journal of Competition Law and Economics, Oxford University Press, vol. 7(4), pages 813-823.
    4. Jay Pil Choi & Heiko Gerlach, 2012. "International Antitrust Enforcement And Multimarket Contact," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 635-658, May.
    5. Becker, Elizabeth & Lindsay, Cotton M, 1994. "Does the Government Free Ride?," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 277-296, April.
    6. Chari, V.V. & Kehoe, Patrick J., 2007. "On the need for fiscal constraints in a monetary union," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2399-2408, November.
    7. G. Thomas Sav, 2010. "Private Giving Crowding Government Funding in Public Higher Education," American Journal of Economics and Business Administration, Science Publications, vol. 2(3), pages 293-299, September.
    8. Lee, Dwight R, 1988. "Free Riding and Paid Riding in the Fight against Terrorism," American Economic Review, American Economic Association, vol. 78(2), pages 22-26, May.
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    Cited by:

    1. Lawrence J. White, 2020. "Antitrust Economics And Consumer Protection Economics In Policy And Litigation: Why The Disparity?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1555-1564, October.
    2. Filomena Garcia & Jose Manuel Paz y Miño & Gustavo Torrens, 2024. "Nationalistic bias in collusion prosecution: the case for international antitrust agreements," Scandinavian Journal of Economics, Wiley Blackwell, vol. 126(3), pages 489-528, July.
    3. Durga P. Gautam, 2014. "Remittances and Governance: Does the Government Free Ride?," Working Papers 14-40, Department of Economics, West Virginia University.
    4. Robert M. Feinberg & Kara M. Reynolds, 2024. "State-Level Antitrust Enforcement: Revisiting the Determinants," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(3), pages 793-806, November.
    5. Bisceglia, Michele & Piccolo, Salvatore & Tarantino, Emanuele, 2023. "M&A advisory and the merger review process," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    6. Dove, John A., 2014. "Antitrust enforcement by state attorneys general: institutional, legal and political considerations," Business and Politics, Cambridge University Press, vol. 16(2), pages 291-312, August.

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