Optimal Fining Methods in Cartel Cases: A Systematic Literature Review - World Competition View Optimal Fining Methods in Cartel Cases: A Systematic Literature Review by - World Competition Optimal Fining Methods in Cartel Cases: A Systematic Literature Review 48 4

This paper presents a systematic review of the literature on optimal fining methods for cartel infringements. Building on the PRISMA 2020 methodology, we analysed forty-seven articles to address three core themes: how optimal fines are defined, the ways different variables are incorporated in quantitative models, and comparative insights. We identified five prevailing approaches: revenuebased, overcharge-based, damages-based, profit-based, and a (recent) sophisticated revenue-based framework blending revenue- and overcharge-based elements. While each method has distinct advantages and challenges, the sophisticated revenue-based approach appears particularly promising in balancing deterrence against proportionality concerns, offering a potential remedy to the shortcomings or implementation issues, found in strictly revenue-based or damages/overcharge-based regimes. This review underlines the importance of aligning fine structures with the overarching policy objective of mitigating wealth transfers from consumers to producers. To the best of our knowledge, this is the first systematic review to map how different strands in extant literature conceive an optimal fine.

World Competition