IDEAS home Printed from https://ideas.repec.org/a/taf/recjxx/v20y2024i1p25-44.html
   My bibliography  Save this article

Cartel formation and the business cycle

Author

Listed:
  • Jesper Fredborg Huric-Larsen

Abstract

Several theoretical propositions suggest that changes in economic activity can explain the decision to form a cartel. The majority of the propositions claim that cartel formation is more likely in expansionary and less likely in contractionary phases of the business cycle. The propositions are re-examined theoretically and by using data on detected cartels for the European Union. In both cases, the results cannot confirm that more cartels are formed in any of the business cycle phases and that correlated economic growth rates create higher incentives to collude. Furthermore, it cannot be confirmed that more cartels form shortly after respectively the trough or the peak in the business cycle. The conclusion is that cartel formation is unaffected by changes in the business cycle.

Suggested Citation

  • Jesper Fredborg Huric-Larsen, 2024. "Cartel formation and the business cycle," European Competition Journal, Taylor & Francis Journals, vol. 20(1), pages 25-44, January.
    • Handle: RePEc:taf:recjxx:v:20:y:2024:i:1:p:25-44
    DOI: 10.1080/17441056.2023.2234233
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17441056.2023.2234233
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17441056.2023.2234233?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:recjxx:v:20:y:2024:i:1:p:25-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recj .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.