Punitive attitudes toward cartels: Evidence from an experimental study

Author:

Boulu-Reshef Béatrice1,Schlumberger Constance Monnier2

Affiliation:

1. University of Orléans

2. Université Paris 1 Panthéon-Sorbonne

Abstract

Abstract This paper investigates the determinants of punitive attitude toward cartels and documents the factors underlying the support for harsher sanctions against these anticompetitive practices. The responses are collected in an experimental design in which respondents are exposed to various levels of cartel-type agreement costs. This experimental manipulation allows us to highlight the fact that individuals are more punitive when they are victims of cartels that reduce substantially their earnings. In addition, punitiveness increases in the number of cartels experienced. Overall, punitive attitudes toward cartels are influenced by socio-demographic variables as age and education level. Being a man is also associated with higher punitiveness. Last, the perceived seriousness of cartels and cartel awareness, are associated with higher punitive attitudes. JEL code : C91, K21, K42, L41, M12

Publisher

Research Square Platform LLC

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