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Encyclopedia of Law and Economics pp 1–13Cite as

Cartels and Collusion

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Abstract

This entry provides an introductory account of cartels and collusion and the means used by European and American law to control such practices. The welfare-reducing and welfare-enhancing features of these cartel and other cartel-type arrangements are discussed to demonstrate the need for considered regulation. Both horizontal and vertical arrangements are analyzed, given their different uses and effects in the economy. However, as some forms of collusive activity are welfare enhancing, these are discussed in an effort to show why regulating such behavior must be done with care. Criminal, administrative, and private sanctions are compared as means of control of such agreements. Other topics briefly discussed the nature of (legally) permitted and prohibited collusive information exchange and noneconomic concerns which may justify collusive behavior.

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Authors and Affiliations

  1. School of Law, Queen’s University Belfast, Belfast, UK

    Bruce Wardhaugh

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  1. Bruce Wardhaugh
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Correspondence to Bruce Wardhaugh .

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Editors and Affiliations

  1. Lehrst. Finanzwissenschaft/ Finanzsoziologie, University of Erfurt, Erfurt, Thüringen, Germany

    Jürgen Backhaus

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Wardhaugh, B. (2014). Cartels and Collusion. In: Backhaus, J. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_555-1

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  • DOI: https://doi.org/10.1007/978-1-4614-7883-6_555-1

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Chapter history

  1. Latest

    Cartels and Collusion
    Published:
    05 August 2021

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_555-2

  2. Original

    Cartels and Collusion
    Published:
    30 September 2014

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_555-1

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