WHICH CHARACTERISTICS OF PRICE-FIXING AGREEMENTS ARE RELATED TO A GREATER DAMAGE TO CONSUMERS?

ABSTRACT Despite the deterrence effect generated by antitrust laws, fact is that many collusive agreements end up forming in economy. An essential task to understand how distinct market characteristics affect cartel profits and damages. This paper develops a theoretical model assess which of price-fixing are related greater damage consumers. Results indicate following as responsible for damage: higher product similarity (substitutability); lower elasticity demand (in absolute values); number members; potential; velocity transactions. Price-fixing have these more intensely, comparison others, tend be harmful consumers, and, therefore, should prioritized authorities regarding detection, prosecution, punishment.