Title
Anatomy of the Rise and Fall of a Price-Fixing Conspiracy: Auctions at Sotheby's and Christie's
Author(s)
Orley Ashenfelter Orley Ashenfelter (Princeton University)
Kathryn Graddy Kathryn Graddy (University of Oxford)
Abstract
The Sotheby's/Christie's price-fixing scandal that ended in the public trial of Alfred Taubman provides a unique window on a number of key economic and antitrust policy issues related to the use of the auction system. The trial provided detailed evidence as to how the price fixing worked, and the economic conditions under which it was started and began to fall apart. The outcome of the case also provides evidence on the novel auction process used to choose the lead counsel for the civil settlement. Finally, though buyers received the bulk of the damages, a straightforward application of the economic theory of auctions shows that it is unlikely that successful buyers as a group were injured.
Creation Date
2004-09
Section URL ID
CEPS
Paper Number
102
URL
https://gceps.princeton.edu/wp-content/uploads/2017/01/102ashenfelter.pdf
File Function
Jel
D44, K21, L41
Keyword(s)
auctions, price-fixing, cartels, antitrust, commissions
Suppress
false
Series
3