Computing cartel overcharges: when theory meets practice

Success in law enforcement of cartel cases hinges on solid investigation procedures and effective punishment. However, the existing legal framework provides guidance on computing fines based on sales revenue, even though it mentions such fines must be no lower than cartel gains. Using data from a r...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Renato Nunes de Lima Seixas, Claudio Ribeiro de Lucinda
Formato:	article
Lenguaje:	EN PT
Publicado:	Universidade de São Paulo 2019
Materias:	cartel damage cartel prevention antitrust Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/c841354aaa1d4fbe92897428947fec11
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:c841354aaa1d4fbe92897428947fec11
record_format	dspace
spelling	oai:doaj.org-article:c841354aaa1d4fbe92897428947fec112021-11-24T14:25:43ZComputing cartel overcharges: when theory meets practice10.1590/0101-41614935rsc0101-41611980-5357https://doaj.org/article/c841354aaa1d4fbe92897428947fec112019-09-01T00:00:00Zhttps://www.revistas.usp.br/ee/article/view/125910https://doaj.org/toc/0101-4161https://doaj.org/toc/1980-5357 Success in law enforcement of cartel cases hinges on solid investigation procedures and effective punishment. However, the existing legal framework provides guidance on computing fines based on sales revenue, even though it mentions such fines must be no lower than cartel gains. Using data from a real case in Brazil, this paper has two aims: (i) reviewing the difficulties associated with computing cartel overcharges and (ii) checking whether the fines levied on convicted firms are in line with these overcharges. We employ three methodologies to compute these overcharges. We find cartel overcharges estimates might be quite sensitive to its assumptions, but apart from differences in differences models with quadratic and cubic trends the fines are in the middle of the range of cartel overcharge estimates. This indicates that the fines are in line with cartel overcharges, but it is recommended to use a set of estimates produced by different methods to ensure their adequacy. Renato Nunes de Lima SeixasClaudio Ribeiro de LucindaUniversidade de São Pauloarticlecartel damagecartel preventionantitrustEconomics as a scienceHB71-74ENPTEstudos Econômicos, Vol 49, Iss 3 (2019)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	cartel damage cartel prevention antitrust Economics as a science HB71-74
spellingShingle	cartel damage cartel prevention antitrust Economics as a science HB71-74 Renato Nunes de Lima Seixas Claudio Ribeiro de Lucinda Computing cartel overcharges: when theory meets practice
description	Success in law enforcement of cartel cases hinges on solid investigation procedures and effective punishment. However, the existing legal framework provides guidance on computing fines based on sales revenue, even though it mentions such fines must be no lower than cartel gains. Using data from a real case in Brazil, this paper has two aims: (i) reviewing the difficulties associated with computing cartel overcharges and (ii) checking whether the fines levied on convicted firms are in line with these overcharges. We employ three methodologies to compute these overcharges. We find cartel overcharges estimates might be quite sensitive to its assumptions, but apart from differences in differences models with quadratic and cubic trends the fines are in the middle of the range of cartel overcharge estimates. This indicates that the fines are in line with cartel overcharges, but it is recommended to use a set of estimates produced by different methods to ensure their adequacy.
format	article
author	Renato Nunes de Lima Seixas Claudio Ribeiro de Lucinda
author_facet	Renato Nunes de Lima Seixas Claudio Ribeiro de Lucinda
author_sort	Renato Nunes de Lima Seixas
title	Computing cartel overcharges: when theory meets practice
title_short	Computing cartel overcharges: when theory meets practice
title_full	Computing cartel overcharges: when theory meets practice
title_fullStr	Computing cartel overcharges: when theory meets practice
title_full_unstemmed	Computing cartel overcharges: when theory meets practice
title_sort	computing cartel overcharges: when theory meets practice
publisher	Universidade de São Paulo
publishDate	2019
url	https://doaj.org/article/c841354aaa1d4fbe92897428947fec11
work_keys_str_mv	AT renatonunesdelimaseixas computingcarteloverchargeswhentheorymeetspractice AT claudioribeirodelucinda computingcarteloverchargeswhentheorymeetspractice
_version_	1718415014706020352

Computing cartel overcharges: when theory meets practice

Ejemplares similares