Abstract
Intuitively, extending the period of repose for price fixing agreements enhances the effectiveness of competition policy enforcement. This paper proves this intuition wrong. As extending the repose period reduces cartel members' defection payoff while it leaves unaltered expected compliance profits, it induces cartels to be more stable internally.
| Original language | English |
|---|---|
| Article number | 17 |
| Number of pages | 13 |
| Journal | B.E. Journal of Economic Analysis & Policy |
| Volume | 7 |
| Issue number | 1 |
| Publication status | Published - 2007 |
| Externally published | Yes |
Keywords
- cartel stability
- detection probabilities
- statue of limitation