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We present a pragmatic approach to calculating the total economic loss induced by a cartel, focusing on the European … trucks cartel (1997-2011). Overall, we estimate a net welfare loss of approximately €0.7 bn. and an overcharge below 1% (€1 ….8 bn.). The cartel overcharge is surprisingly low. We explain this by (1) the existence of a reference market with an …
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We study how harmonization of corporate tax systems affects the stability of international cartels. We show that tax base harmonization reinforces collusive agreements, while harmonization of corporate tax rates may destabilize or stabilize cartels. We also find that bilateral and full...
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