The Gradual Impact of Sanctioning Cartels on Market Competition:

In this talk, Sergio —a researcher trained at Georgia Tech and former student at Universidad de los Andes— presents an innovative study that addresses a key question in economic policy: how effective are cartel sanctions in reestablishing long-term competition in markets?

Using public data from Colombia and a state-of-the-art difference-in-differences model with staggered treatment timing, Sergio examines the gradual impact of sanctions issued by Colombia’s Competition Authority (SIC) across various manufacturing industries. By relying on the Learner index as a proxy for market power, the study reveals that positive effects on competition take several years to appear, possibly due to persistent tacit coordination among firms.

More than a methodological contribution, this talk offers practical insights on how competition authorities can leverage public data to evaluate the actual outcomes of their interventions — beyond the number or size of fines.