Beschreibung:
We present a pragmatic approach to calculating the total economic loss induced by a cartel, focusing on the European trucks cartel (1997-2011). Overall, we estimate a net welfare loss of approximately €0.7 bn. and an overcharge below 1% (€1.8 bn.). The cartel overcharge is surprisingly low. We explain this by (1) the existence of a reference market with an already elevated price level and (2) by other industry-specific factors that encourage cartel arrangements. In the case of the trucks cartel, the companies involved have apparently preferred the Hicksian "quiet life" of the monopolist to a further maximization of profits.