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Are Antitrust Officials Using a Flawed Framework to Find Cartels?
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Are Antitrust Officials Using a Flawed Framework to Find Cartels?

Knowledge at Wharton·Knowledge at Wharton Staff·about 1 month ago
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Collusion among companies in the form of cartels is generally viewed as detrimental to the marketplace. The Antitrust Division of the U.S. Justice Department has uncovered some cartels, but it is believed that many more go undiscovered. Authorities typically examine the cartels they’ve uncovered to learn about cartels yet to be discovered. But is their approach flawed? A research paper by Wharton business economics and public policy professor Joseph Harrington titled, “ What Can the Duration of Discovered Cartels Tell Us About the Duration of All Cartels ?” examines discovered cartels to see whether they accurately describe the actual latent population and duration of all cartels. Knowledge at Wharton recently spoke with him to talk about his findings. An edited transcript of the conversation follows. Knowledge at Wharton : Tell us about your paper. Harrington : Well, it starts with the issue of collusion.…

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