Frontier Economics

Frontier Publications

Thinking outside the box: calculating damages

Reflections on major cartel cases in Australia

Explicit agreements among competitors that fix prices are illegal – and for good reason. If the collusion is successful, prices will be higher and output lower. But cartels are not always very successful. How can the effects be determined and the detriments measured? Frontier Economics has advised both plaintiffs and defendants in several recent cases in Australia where significant damages from cartel activities were sought or paid. This bulletin examines two major cases, looking at the challenges in modelling the effects of the cartels.

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