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The Evolution of U.S. Cartel Enforcement

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  • Vivek Ghosal
  • D. Daniel Sokol

Abstract

Antitrust as a whole was transformed owing in large part to Robert Bork in The Antitrust Paradox. This paper examines what Bork said and did not say about cartel enforcement and offers an examination of how the actual structure of cartel enforcement played out relative to what Bork advocated. To provide some perspective on Bork's view of cartel enforcement, we compare his views with those of the other major influential antitrust book of the time by Richard Posner. We identify three distinct stages of cartel enforcement. Stage 1 is characterized by a low number of cartels prosecuted along with low fines and jail terms. Consistent with Bork's vision, stage 2 demonstrates a significant increase in cartels prosecuted, although fines and jail terms remain low. Stage 3 (the current stage) exemplifies a decline in the number of cartels prosecuted relative to stage 2 but with dramatic increases in monetary fines and jail terms.

Suggested Citation

  • Vivek Ghosal & D. Daniel Sokol, 2014. "The Evolution of U.S. Cartel Enforcement," Journal of Law and Economics, University of Chicago Press, vol. 57(S3), pages 51-65.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/676070
    DOI: 10.1086/676070
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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
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    3. George L. Priest, 2014. "Bork's Strategy and the Influence of the Chicago School on Modern Antitrust Law," Journal of Law and Economics, University of Chicago Press, vol. 57(S3), pages 1-17.
    4. Ghosal, Vivek & Gallo, Joseph, 2001. "The cyclical behavior of the Department of Justice's antitrust enforcement activity," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 27-54, January.
    5. Nathan H. Miller, 2009. "Strategic Leniency and Cartel Enforcement," American Economic Review, American Economic Association, vol. 99(3), pages 750-768, June.
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    Cited by:

    1. Robert M. Feinberg & Kara M. Reynolds, 2024. "State-Level Antitrust Enforcement: Revisiting the Determinants," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(3), pages 793-806, November.
    2. Thomas Bourveau & Guoman She & Alminas Žaldokas, 2020. "Corporate Disclosure as a Tacit Coordination Mechanism: Evidence from Cartel Enforcement Regulations," Journal of Accounting Research, Wiley Blackwell, vol. 58(2), pages 295-332, May.
    3. Robert M. Feinberg, 2023. "Patterns and Determinants of Canadian Anti-Cartel and Antidumping Policy: 1990–2019," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 309-327, December.
    4. Vivek Ghosal & D. Daniel Sokol, 2016. "Policy Innovations, Political Preferences, and Cartel Prosecutions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(4), pages 405-432, June.

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