Antitrust policies shape market collusion networks for more competition and innovation.
The article looks at how different antitrust policies affect the agreements between companies that prevent them from competing in each other's markets. When the policy only considers the chance of being caught and the penalty, companies form tight alliances where they all work together. But when the policy also looks at prices, companies form cartels where they don't all have to be connected. This means that the second policy can lead to more competition between companies. Overall, antitrust laws can encourage companies in big alliances to break their agreements, which can be good for competition.