In this article published in the ABA’s Cartel & Criminal Practice Newsletter, Michelle Burtis and Bruce Kobayashi analyze, from an economic perspective, the relationship between cartel fines imposed by the US DOJ and harm-based optimal penalties, as described in economic literature. The authors find that under certain conditions, the DOJ fines are consistent with optimal fines when the multiplier used in setting the fine is at its minimum. To read the article, click the link below.
How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...