Are Cartels a Bad Thing? | BTalk Australia

Last Updated Aug 26, 2009 4:48 PM EDT

Podcast

(Episode 317; 9 minutes 13) Well, of course cartels are a bad thing, but Jason Soon, a Visiting Fellow at the Centre for Independent Studies, says their impact is often overstated and so is the legislative response. He argues the case in his paper The Folly of Criminalising Cartels.

He discusses the issues with Phil Dobbie in today's BTalk Australia. Could the legislation actually make it harder to catch offenders, for example? Will the risk of criminal proceedings act as any more of a deterrent? And are cartels really having a negative impact on the prices we pay?

It will be interesting to see what the next year brings, with the ACCC now able to bring criminal proceedings against perpetrators, with fines of $10 million or more and 10 years in jail.

What do you think? Why is there such a poor track record in uncovering cartels? Perhaps there's less of them than we thought. Add comments in the Talkback section at the end of this post.

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