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Simple Voting Games and Cartel Damage Proportioning

Title data

Napel, Stefan ; Welter, Dominik:
Simple Voting Games and Cartel Damage Proportioning.
In: Games. Vol. 12 (1 October 2021) Issue 4 . - No. 74.
ISSN 2073-4336
DOI: https://doi.org/10.3390/g12040074

Official URL: Volltext

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Abstract in another language

Individual contributions by infringing firms to the compensation of cartel victims must reflect their “relative responsibility for the harm caused” according to EU legislation. Several studies have argued that the theoretically best way to operationalize this norm is to apply the Shapley value to an equilibrium model of cartel prices. Because calibrating such a model is demanding, legal practitioners prefer workarounds based on market shares. Relative sales, revenues, and profits however fail to reflect causal links between individual behavior and prices. We develop a pragmatic alternative: use simple voting games to describe which cartel configurations can(not) cause significant price increases in an approximate, dichotomous way; then compute the Shapley-Shubik index. Simulations for a variety of market scenarios document that this captures relative responsibility better than market share heuristics can.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Simple voting games; Shapley-shubik index; Relative responsibility; Cartel damage allocation
Subject classification: JEL Classification: C71; D04; L40; L13; D43
Institutions of the University: Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics IV - Microeconomics > Chair Economics IV - Microeconomics - Univ.-Prof. Dr. Stefan Napel
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 320 Political science
300 Social sciences > 330 Economics
Date Deposited: 13 Oct 2021 07:29
Last Modified: 13 Oct 2021 07:29
URI: https://eref.uni-bayreuth.de/id/eprint/67291