The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements

Jeroen Hinloopen

The B.E. Journal of Economic Analysis & Policy, 2007, vol. 7, issue 1, 13

Abstract: Intuitively, extending the period of repose for price fixing agreements enhances the effectiveness of competition policy enforcement. This paper proves this intuition wrong. As extending the repose period reduces cartel members' defection payoff while it leaves unaltered expected compliance profits, it induces cartels to be more stable internally.

Keywords: cartel stability; detection probabilities; statue of limitation (search for similar items in EconPapers)
Date: 2007
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Working Paper: The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements (2005)
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DOI: 10.2202/1935-1682.1135

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