Year: 2004
Type: article
Abstract: Standard methods in the U.S. for calculating antitrust damages in price‐fixing cases are shown to create a strategic incentive for firms to price above the non‐collusive price after the cartel has been dissolved. This results in an overestimate of the but for price and an underestimate of the level of damages. The extent of this upward bias in the but for price is greater, the longer the cartel was in place and the more concentrated the industry.
Source: Journal of Industrial Economics
Author: Joseph E. Harrington
Institution: Johns Hopkins University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: National Science Foundation
OpenAlex ID: W2145000352