The Role of Economic Incentives within the Law
HKU Competition Law Lecture Series
The Role of Economic Incentives within the Law:
the Case of Cartel Fines
10 February 2025 (Monday), 6:30 – 7:30 PM
NEW VENUE: Room 824, 8/F Cheng Yu Tung Tower, HKU
The law is essential for creating the economic incentives that govern an economy’s success. In this talk, I will focus on how these economic effects work in one area of law, that on market competition. Comparing legal practice and economic implications across many jurisdictions, I focus on fines, damages and penalties within anti-cartel law enforcement. In particular, I first argue that setting a successful framework for cost-benefit analysis of cartel violations is not only difficult but also ultimately risky, due to the possibility that correct application of such analysis could lead to bankruptcy of companies. That is, an appropriate ex post methodology of penalties that ensures illegal activity yields expected losses to the violator could have an ironic implications of reducing competition subsequent to legal intervention. Second, I expose arguments for and against integration of a principle of fairness to the corporate offender within cartel fining approaches. To the extent the arguments for fairness to violators are taken seriously, the consequence is that default rules over the level of fines and penalties as a percentage of revenues may be improved.
About the Speaker
Sean Ennis is Director of the Centre for Competition Policy and Professor of Competition Policy at the Norwich Business School of the University of East Anglia (UEA). He specializes in industrial organization, regulatory governance, contracting and innovation. He previously worked as an economist at the OECD, the European Commission, and the U.S. Department of Justice’s Antitrust Division. In addition to authoring more than 30 research papers, reports and book chapters, he has presented his views to the G20, the OECD, the United Nations, the European and UK Parliaments, regulators, and companies. He earned a PhD from UC Berkeley and BA Hons from King’s College, Cambridge.
Chair: Professor Adrian Kuenzler, Associate Professor, Faculty of Law, The University of Hong Kong
Registration is required for this in-person event. Please register ONLINE to reserve your place.
Enquiries: Flora Leung at aiiflhku@hku.hk