How big is a tip of the iceberg? A parsimonious way to estimate cartel detection rate
Code:
11-06
Authors:
Ormosi, P.
Date:
01 Jun 2011
Abstract
How big is a tip of the iceberg? A parsimonious way to estimate cartel detection rate
By Ormosi, P.
Abstract: Reliable estimates of crime detection rates could help design better sanctions and improve our understanding of the efficiency of law enforcement. For cartels, insufficient knowledge on the rate of discovery has hindered effective enforcement in the past. In comparison to previous works, this paper offers a more parsimonious and simple-to-use method to estimate timedependent cartel discovery rates, whilst allowing for heterogeneity across firms and markets. It draws on capture-recapture methods, similar to those used to make inferences on various wildlife population characteristics in ecology. An application of this method provides evidence that less than onefifth of all cartels are discovered.
