Houba, Harold; Motchenkova, Evgenia; Wen, Quan - Tinbergen Instituut - 2013
We study antitrust enforcement that channels price-fixing incentives through setting fines and allocating resources to … detection activities. Antitrust fines obey four legal principles: punishments should fit the crime, proportionality, bankruptcy … challenge for optimal antitrust enforcement. We integrate the mentioned legal principles into an infinitely-repeated oligopoly …