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Cartels as Small World Networks: Evidence from Graphite Electrode Cartel

Author

Listed:
  • Ponce Carlos J.

    (Departamento de Economía, Universidad Alberto Hurtado, Erasmo Escala 1835, 8340539 Santiago, Chile)

  • Roldán Flavia

    (Universidad ORT Uruguay, Bulevard España 2633, 11300 Montevideo, Uruguay, Phone: +598 2707 1806)

Abstract

This article contributes to understanding the organization of collusive agreements by studying the inner-workings of the graphite electrode cartel. For this purpose: (i) we construct a database that comprises 49 meetings between 24 cartel members during the life period of the agreement, and (ii) we develop a conceptual framework that captures the affiliation of cartel members to meetings. Using statistical methods of social networks, we find that the cartel is organized around a few highly connected sub-networks that are close to each other.

Suggested Citation

  • Ponce Carlos J. & Roldán Flavia, 2017. "Cartels as Small World Networks: Evidence from Graphite Electrode Cartel," Review of Network Economics, De Gruyter, vol. 16(1), pages 27-61, March.
    • Handle: RePEc:bpj:rneart:v:16:y:2017:i:1:p:27-61:n:1
    DOI: 10.1515/rne-2016-0047
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    References listed on IDEAS

    as
    1. Zhongmin Wang, 2008. "Collusive Communication and Pricing Coordination in a Retail Gasoline Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(1), pages 35-52, February.
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    6. Harrington, Joseph E., 2006. "How Do Cartels Operate?," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(1), pages 1-105, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    affiliation networks; cartels; coordination; small-worlds; vulnerability;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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