Wednesday, November 30, 2011

Do States Free Ride in Antitrust Enforcement?

Posted by D. Daniel Sokol

Robert M. Feinberg and Thomas A. Husted (American University) ask Do States Free Ride in Antitrust Enforcement?

ABSTRACT: Recent research has documented a substantial role in antitrust enforcement by U.S. states. While many of the cases litigated involve small local firms, a non-trivial portion encompass multiplestate issues. Some previous literature has investigated whether states engage in free-riding behavior in environmental regulation, and whether governments free ride on private decisions in provision of public goods. In this paper, we analyze a sample of antitrust cases involving crossstate impacts (from the Multi-State Antitrust Database, provided by the National Association of Attorneys General) and explain the determinants of free-riding (which we define as participatingin a case, but not as a lead plaintiff).

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