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case of cartel violations, both the United States and the EU have introduced guidelines for calculating fines that are … intended to make fining decisions more transparent and to deter cartel formation. The research summarized in this paper finds …-deterrence theory dictates. We do find rather large differences in temporal patterns between U.S. and EC fines: the former do not …
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We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....
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We build a game-theoretic model to examine how better demand forecasting due to algorithms, machine learning and artificial intelligence affects the sustainability of collusion in an industry. We find that while better forecasting allows colluding firms to better tailor prices to demand...
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Justice has great latitude in recommending corporate cartel fines to the federal courts, and its recommendations are nearly … direct test of the optimal deterrence theory of antitrust crimes.Regressions are fitted to a sample of the corporations that …-deterrence model is quite good. We find that U.S. corporate cartel fines are strongly directly related to economic injuries from …
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Sophisticated collusive compensation schemes such as assigning future market shares or direct transfers are frequently observed in detected cartels. We show formally why these schemes are useful for dampening deviation incentives when colluding firms are temporary asymmetric. The relative...
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