Thursday, August 10, 2017
John Connor (Purdue and AAI) argues Cartels Costly for Customers.
ABSTRACT: This paper describes some major trends in cartelization of markets worldwide with a special emphasis on the economic injuries being generated by illegal collusion. Known affected commerce by international cartels discovered during 1990-2014 exceeds a nominal $13.6 trillion worldwide. Projections to adjust for unknown affected commerce raise the total to the $64 to $189 trillion range. Overcharges cause price-fixing injuries in the $12 to $37 trillion range. Global antitrust fines announced for discovered international cartels were less than 1% of the economic injuries sustained.