Description
The Role of Economic Incentives in the Law: The Case of Cartel FinesThe law is essential for creating the economic incentives that govern an economy’s success. In this talk, I will focus on how these economic effects work in one area of law, that on market competition. Comparing legal practice and economic implications across many jurisdictions, I focus on fines, damages and penalties within anti-cartel law enforcement. In particular, I first argue that setting a successful framework for cost-benefit analysis of cartel violations is not only difficult but also ultimately risky, due to the possibility that correct application of such analysis could lead to bankruptcy of companies. That is, an appropriate ex post methodology of penalties that ensures illegal activity yields expected losses to the violator could have an ironic implications of reducing competition subsequent to legal intervention. Second, I expose arguments for and against integration of a principle of excessiveness to the corporate offender within cartel fining approaches. To the extent the arguments are taken seriously, the consequence is that default rules over the level of fines and penalties as a percentage of revenues may be improved.
| Period | 10 Feb 2025 |
|---|---|
| Event type | Public lecture/seminar/debate |
| Location | Hong Kong, Hong KongShow on map |
| Degree of Recognition | International |