The Econometrics of Cartel Overcharges

  title={The Econometrics of Cartel Overcharges},
  author={Marcel Boyer and Rachidi Kotchoni},
Connor and Lande (2006) conducted a survey of cartel overcharge estimates and found an average in the range of 31% to 49%. By examining more sources, Connor (2010b) finds a median of 23.3% for all type of cartels and a mean of 50.4% for successful cartels. However, the data used in these studies are estimates rather than true observations, since the true illegal profits of cartels are rarely observable. Therefore, these data are subject to model error, estimation error and publication bias. A… CONTINUE READING


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