Economics, Econometrics and Finance
4 years ago

Cartel crackdown in one market sparks collusion in another, study finds.

SSRN Electronic Journal
Multi-Market Collusion with Demand Linkages and Antitrust Enforcement
Jay Pil Choi, Heiko Gerlach

Paper Summary

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The article explores how cracking down on cartels in one market can affect cartels in related markets. Prosecuting a cartel in one market can weaken the cartel and cause it to break up in another market. On the other hand, stopping a cartel can make it stronger in a related market and even lead to new cartels forming in previously competitive markets. The study also looks at the implications for antitrust authorities when deciding how to enforce laws against cartels.