AAI WORKING PAPER #04-05: Price-Fixing Overcharges: Legal and Economic Evidence

This 104-page paper by Professor Connor, an economist at Purdue and an AAI Advisory Board member, surveys hundreds of published social-science studies of private, hard-core cartels that contained 674 observations of long-run overcharges.The primary finding is that the median cartel overcharge for all types of cartels over all time periods is 25%: 18% for domestic cartels, 32% for international cartels, and 28% for all successful cartels. These findings suggest that U.S. and non-U.S. cartel penalties ought to be increased.

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