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Do States Free Ride In Antitrust Enforcement?

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  • ROBERT M. FEINBERG
  • THOMAS A. HUSTED

Abstract

Recent research has documented a substantial role in antitrust enforcement by U.S. states. While many of the cases litigated involve small local firms, a non-trivial portion encompass multiplestate issues. Some previous literature has investigated whether states engage in free-riding behavior in environmental regulation, and whether governments free ride on private decisions in provision of public goods. In this paper, we analyze a sample of antitrust cases involving crossstate impacts (from the Multi-State Antitrust Database, provided by the National Association of Attorneys General) and explain the determinants of free-riding (which we define as participatingin a case, but not as a lead plaintiff). JEL classification:
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  • Robert M. Feinberg & Thomas A. Husted, 2013. "Do States Free Ride In Antitrust Enforcement?," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 997-1001, January.
    • Handle: RePEc:bla:ecinqu:v:51:y:2013:i:1:p:997-1001
    DOI: j.1465-7295.2012.00477.x
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    1. R. Isaac & James Walker & Susan Thomas, 1984. "Divergent evidence on free riding: An experimental examination of possible explanations," Public Choice, Springer, vol. 43(2), pages 113-149, January.
    2. Jay Pil Choi & Heiko Gerlach, 2012. "International Antitrust Enforcement And Multimarket Contact," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 635-658, May.
    3. Robert M. Feinberg & Thomas A. Husted, 2011. "Patterns Of Establishment Entry And State-Level Antitrust," Journal of Competition Law and Economics, Oxford University Press, vol. 7(4), pages 813-823.
    4. Chari, V.V. & Kehoe, Patrick J., 2007. "On the need for fiscal constraints in a monetary union," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2399-2408, November.
    5. G. Thomas Sav, 2010. "Private Giving Crowding Government Funding in Public Higher Education," American Journal of Economics and Business Administration, Science Publications, vol. 2(3), pages 293-299, September.
    6. Robert Feinberg & Kara Reynolds, 2010. "The Determinants of State-Level Antitrust Activity," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 37(3), pages 179-196, November.
    7. Lee, Dwight R, 1988. "Free Riding and Paid Riding in the Fight against Terrorism," American Economic Review, American Economic Association, vol. 78(2), pages 22-26, May.
    8. Becker, Elizabeth & Lindsay, Cotton M, 1994. "Does the Government Free Ride?," Journal of Law and Economics, University of Chicago Press, vol. 37(1), pages 277-296, April.
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    Cited by:

    1. Bisceglia, Michele & Piccolo, Salvatore & Tarantino, Emanuele, 2023. "M&A advisory and the merger review process," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    2. Dove John A., 2014. "Antitrust enforcement by state attorneys general: institutional, legal and political considerations," Business and Politics, De Gruyter, vol. 16(2), pages 1-22, August.
    3. Lawrence J. White, 2020. "Antitrust Economics And Consumer Protection Economics In Policy And Litigation: Why The Disparity?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1555-1564, October.
    4. Durga P. Gautam, 2014. "Remittances and Governance: Does the Government Free Ride?," Working Papers 14-40, Department of Economics, West Virginia University.

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