Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Abstract We compare the performance of cartel penalties that are proportional to a cartel’s revenue and cartel penalties that are proportional to the difference between the cartel price and the competitive price: the overcharge. Prior literature has shown that when the probability of cartel detection does not depend on the cartel price, penalties that are based on a cartel’s overcharge generate greater total surplus and consumer surplus than do penalties that are based on a cartel’s revenue. In contrast, we find that when the probability of detection depends on the cartel price, penalties that are based on revenue can generate greater total surplus and consumer surplus.