Economic Rationalities of Governance and Ambiguity in the Criminalization of Cartels

Abstract

In July 2009, Australia introduced criminal offences and jail for collusive conduct (price fixing, output restriction, market allocation and bid rigging) in markets. The substance of the justification for criminalization of cartel conduct is 'blindly' economic. It does not spring from a sense of moral or political outrage at collusion in the market. Rather, it is justified on the basis of effective regulatory technique, the need to deter economically harmful behaviour. This paper examines the rationality of anti-cartel law from the point of view of the 'legal consciousness' of 25 business people who have faced enforcement action for cartel conduct. Their justifications for their own behaviou..