Cartels: the Probability of Getting Caught in the European Union. Bruges European Economic Research (BEER) Papers 12/March 2008

In 1991, Bryant and Eckard estimated the annual probability that a cartel would be detected by the US Federal authorities, conditional on being detected, to be at most between 13 % and 17 %. 15 years later, we estimated the same probability over a European sample and we found an annual probability that falls between 12.9 % and 13.3 %. We also develop a detection model to clarify this probability. Our estimate is based on detection durations, calculated from data reported for all the cartels convicted by the European Commission from 1969 to the present date, and a statistical birth and death process model describing the onset and detection of cartels.