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How Much Do Cartels Overcharge

Author

Listed:
  • Marcel Boyer
  • Rachidi Kotchoni

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

Connor and Lande (Issues in competition law and policy, pp 2203–2218, 2008 ) conducted a survey of cartels and found a mean overcharge estimate in the range of 31–49 %. By examining more sources, Connor (Price-fixing overcharges, 2nd edn. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1610262 , 2010 ) finds a mean of 50.4 % for successful cartels. However, the data that are used in those studies are estimates that are obtained from different methodologies, sources, and contexts rather than from direct observation. We conduct a meta-analysis of cartel overcharge estimates that provides a sound treatment of these matters and other data problems. We find a bias-corrected mean and median overcharge estimate of 15.47 and 16.01 %. Our results have significant antitrust policy implications. Copyright Springer Science+Business Media New York 2015
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Marcel Boyer & Rachidi Kotchoni, 2015. "How Much Do Cartels Overcharge," Post-Print hal-01386061, HAL.
    • Handle: RePEc:hal:journl:hal-01386061
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