The distribution of harm in price-fixing cases Boone, Jan

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Boone, Jan
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International Journal of Industrial Organization
Price fixing.; Business, international; Analysis
To link to full-text access for this article, visit this link: Byline: Jan Boone, Wieland Muller Keywords: Cartel; Abuse of a dominant position; Pass-on defence; Supply curve; Apportionment of harm; Tax incidence Abstract: We consider a vertically related industry and analyze how the total harm due to a price increase upstream is distributed over downstream firms and final consumers. For this purpose, we develop a general model without making specific assumptions regarding demand, costs, or the mode of competition. We consider both the case of homogeneous and differentiated goods markets, and illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm. Furthermore, we discuss data requirements and suggest explicit formulas and regression specifications that can be used to estimate the relevant terms in the harm distribution in practice. Article History: Received 12 February 2010; Revised 21 September 2011; Accepted 28 November 2011
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