at Google ScholarTitle data
Napel, Stefan ; Welter, Dominik:
Umbrella Pricing and Cartel Size.
In: International Journal of Industrial Organization.
Vol. 91
(2023)
.
- 103032.
ISSN 0167-7187
DOI: https://doi.org/10.1016/j.ijindorg.2023.103032
Abstract in another language
It is generally assumed that bigger scale and scope of private antitrust enforcement promotes effective competition. This has motivated several North American and European courts to uphold redress claims not only from clients of a detected cartel but also plaintiffs who were exposed to ‘umbrella pricing’, i.e. equilibrium price increases by non-colluding competitors. The paper shows that the presumed deterrence effects of obliging infringing firms to compensate aggrieved customers of non-infringing firms can be dominated by adverse cartel size effects: liability for umbrella damages primarily constrains small partial cartels. It thereby improves the comparative profitability and stability of large ones. More encompassing cartels can form, prices rise, and welfare falls.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | Cartel deterrence; Cartel formation; Effective competition; Umbrella effects; Redress payments; Cartel size |
| 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 Faculties Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics IV - Microeconomics |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 320 Political science 300 Social sciences > 330 Economics |
| Date Deposited: | 08 Nov 2023 11:04 |
| Last Modified: | 09 Nov 2023 12:27 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/87489 |