Cartels Costly for Customers

Posted by Social Science Research Network

Cartels Costly for Customers

By John M. Connor (American Antitrust Institute)

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.

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