“Our Customers Are Our Enemies”: The Lysine Cartel of 1992–1995

“Our Customers Are Our Enemies”: The Lysine Cartel of 1992–1995 Prosecution of the lysine cartel signaled aresurgence in global price-fixingconspiracies in dozens of markets. It was the first to enter thevideo age and set new precedents for large criminal fines. Thispaper examines the sensitivity of overcharges generated by thecartel to several factors: time period, seasonality of demand,and the price absent collusion. Civil settlements in the federalclass action (including the interrelated citric acid conspiracy)were the fourth highest in legal history. Yet, overcharges of$65 to $134 million mean that buyers in the federal class receivedat most single damages. The opt-out firms got double damages. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

“Our Customers Are Our Enemies”: The Lysine Cartel of 1992–1995

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1026513927396
Publisher site
See Article on Publisher Site

Abstract

Prosecution of the lysine cartel signaled aresurgence in global price-fixingconspiracies in dozens of markets. It was the first to enter thevideo age and set new precedents for large criminal fines. Thispaper examines the sensitivity of overcharges generated by thecartel to several factors: time period, seasonality of demand,and the price absent collusion. Civil settlements in the federalclass action (including the interrelated citric acid conspiracy)were the fourth highest in legal history. Yet, overcharges of$65 to $134 million mean that buyers in the federal class receivedat most single damages. The opt-out firms got double damages.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 3, 2004

References

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