Price Fixing Hits Home: An Empirical Study of US Price-Fixing Conspiracies
Margaret Levenstein and
Valerie Y. Suslow
Additional contact information
Valerie Y. Suslow: Johns Hopkins University Carey School of Business
Review of Industrial Organization, 2016, vol. 48, issue 4, 361-379
Abstract This paper analyzes a sample of Section 1, Sherman Act price fixing cases brought by the US Department of Justice between 1961 and 2013. Over 500 cartels were prosecuted during this period. The determinants of cartel formation and cartel breakup are estimated, including analysis of the impact of the discount rate, business cycles, and antitrust policy. We find that cartels are more likely to break up during periods of high real interest rates, presumably because higher interest rates are associated with greater impatience. The adoption of a stronger amnesty policy has no significant impact on cartel breakup over this period, although the results suggest some association with lower cartel formation rates.
Keywords: Cartel; Collusion; Price-fixing; Competition policy; Antitrust; Sherman Act (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11151-016-9520-5 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:48:y:2016:i:4:d:10.1007_s11151-016-9520-5
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2
Access Statistics for this article
Review of Industrial Organization is currently edited by L.J. White
More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().