Nominal Fines Fail To Deter Cartels: Study

Law360, New York (January 11, 2007, 12:00 AM EST) -- Global cartels are profitable businesses, and so long as the benefits of price-fixing far outweigh the costs, flouting the law will continue to make economic sense, according to a recent study.

A recent study by two economists points to widespread recidivism by cartels as proof of the impotency of penalties imposed by antitrust authorities against cartels.

Professor of Industrial Economics at Purdue University in Indiana John M. Connor, who co-authored the paper with colleague C. Gustav Helmers, said cartels could only be broken up by a...
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