In the classic cartel, supposed competitors meet in the proverbial smoke-filled hotel room and agree to fix prices at supra-competitive levels. Even though the “agreement” is unlikely to be legally binding on the parties (i.e., the agreement could not be enforced against one of the cartelists that began to “cheat” by offering lower prices), virtually all modern economies would treat such a cartel as unlawful under their national antitrust laws.
Despite the effectiveness of leniency prog
George A. Hay Charles Frank Reavis Sr. Professor of Law and Professor of Economics
George Hay is one of the foremost antitrust authorities in the United States. After he received his Ph.D. in economics from Northwestern University, Hay taught economics at Yale University for five years, until he joined the U.S. Department of Justice's Antitrust Division in 1972. Hay served as Director of Economics, and won several awards for service to the Justice Department. Hay became a Professor of Law and a Professor of Economics at Cornell University in 1979, and was named to the Edward Cornell chair in the Law School in 1992. He became the Charles Frank Reavis Sr. Professor of Law in 2014.