The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements

Jeroen Hinloopen, Universiteit van Amsterdam and Katholieke Universiteit Leuven

A BEJEAP Contributions article.

Abstract

Intuitively, extending the period of repose for price fixing agreements enhances the effectiveness of competition policy enforcement. This paper proves this intuition wrong. As extending the repose period reduces cartel members' defection payoff while it leaves unaltered expected compliance profits, it induces cartels to be more stable internally.

Submitted: March 13, 2003 · Accepted: January 5, 2007 · Published: March 14, 2007

Recommended Citation

Hinloopen, Jeroen (2007) "The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements," The B.E. Journal of Economic Analysis & Policy: Vol. 7 : Iss. 1 (Contributions), Article 17.
Available at: http://www.bepress.com/bejeap/vol7/iss1/art17

 
 
 
 

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