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How a cartel operates: evidence from Graphite Electrode cartel from a social network perspective

Author

Listed:
  • Carlos Ponce

    (Universidad Alberto Hurtado)

  • Flavia Roldán

    (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía)

Abstract

This article analyses the organization of communication in the Graphite Electrode cartel. By using European Commission data, we reconstruct the network of communication among cartel’s participants. From this information, we can state that the Graphite Electrode conspiracy is organized in a decentralized way, where the hierarchical rank of participants was key in the organization of meetings. The low level of density index in the overall network may indicate that cartel’s designers took care about security target by reducing the level of communication. The analysis of different centrality measures may suggest that cartel’s instigators exerted a role of coordinators, but in a position such that they remained hidden from antitrust scrutiny. That is, operativeness could has been limited by the security target.

Suggested Citation

  • Carlos Ponce & Flavia Roldán, 2016. "How a cartel operates: evidence from Graphite Electrode cartel from a social network perspective," Documentos de Investigación 113, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    • Handle: RePEc:avs:wpaper:113
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    File URL: https://dspace.ort.edu.uy/bitstream/handle/20.500.11968/2722/documento-de-investigacion-113.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    affiliation network; collusion; organization; communication.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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