IDEAS home Printed from https://ideas.repec.org/p/uea/ueaccp/2012_11.html
   My bibliography  Save this paper

Who Manages Cartels? The Role of Sales and Marketing Managers within International Cartels: Evidence from the European Union 1990-2009

Author

Listed:
  • John K. Ashton

    (Bangor Business School)

  • Andrew D. Pressey

    (Birmingham Business School)

Abstract

Although the study of international cartels has a considerable lineage our understanding of their organization, operation and management remains limited. This study attends to this omission through examining the role of marketing and sales managers within international cartels using a content analysis of 56 major international price-fixing cartels over two decades (1990-2009). It is reported that marketing and sales managers are demonstrably involved in many international cartels (42.9% of all cartel cases), albeit often accompanied by more senior managers from other firm functions. Marketing and sales managers appear most frequently within worldwide and manufacturing industry cartels and where market allocation and customer-sharing practices occur. In light of these findings it is important to reassess both managerial attitudes towards inter-firm collaborations and enhance the position of antitrust concerns within business school syllabi.

Suggested Citation

  • John K. Ashton & Andrew D. Pressey, 2012. "Who Manages Cartels? The Role of Sales and Marketing Managers within International Cartels: Evidence from the European Union 1990-2009," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-11, Centre for Competition Policy, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaccp:2012_11
    as

    Download full text from publisher

    File URL: https://ueaeco.github.io/working-papers/papers/ccp/CCP-12-11.pdf
    File Function: main text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John K. Ashton & Andrew D. Pressey, 2009. "The Regulatory Challenge to Branding: An Interpretation of UK Competition Authority Investigations 1950-2007," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2009-02, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    2. repec:hal:spmain:info:hdl:2441/6ssct5c4v093a9sfpao3qpcgr6 is not listed on IDEAS
    3. Bicchieri, Cristina & Erte, Xiao, 2007. "Do the right thing: But only if others do so," MPRA Paper 4609, University Library of Munich, Germany.
    4. Cento Veljanovski, 2011. "Deterrence, Recidivism, And European Cartel Fines," Journal of Competition Law and Economics, Oxford University Press, vol. 7(4), pages 871-915.
    5. Jonathan B. Baker, 2003. "The Case for Antitrust Enforcement," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 27-50, Fall.
    6. N.S.R. Rosenboom, 2012. "Career Development After Cartel Prosecution: Cartel Versus Non-Cartel Managers," Journal of Competition Law and Economics, Oxford University Press, vol. 8(1), pages 145-165.
    7. Joseph Clougherty, 2010. "Competition Policy Trends and Economic Growth: Cross-National Empirical Evidence," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(1), pages 111-127.
    8. Joe S. Bain, 1951. "Relation of Profit Rate to Industry Concentration: American Manufacturing, 1936–1940," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 65(3), pages 293-324.
    9. de Roos, Nicolas, 2006. "Examining models of collusion: The market for lysine," International Journal of Industrial Organization, Elsevier, vol. 24(6), pages 1083-1107, November.
    10. Davies, Stephen W & Driffield, Nigel L & Clarke, Roger, 1999. "Monopoly in the UK: What Determines Whether the MMC Finds against the Investigated Firms?," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 263-283, September.
    11. Ghosal, Vivek & Gallo, Joseph, 2001. "The cyclical behavior of the Department of Justice's antitrust enforcement activity," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 27-54, January.
    12. Joseph A. Clougherty, 2005. "Antitrust holdup source, cross‐national institutional variation, and corporate political strategy implications for domestic mergers in a global context," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 769-790, August.
    13. Philip C. Newman, 1948. "Key German Cartels Under the Nazi Regime," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 62(4), pages 576-595.
    14. Dick, Andrew R, 1996. "When Are Cartels Stable Contracts?," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 241-283, April.
    15. Marjo Siltaoja & Meri Vehkaperä, 2010. "Constructing Illegitimacy? Cartels and Cartel Agreements in Finnish Business Media from Critical Discursive Perspective," Journal of Business Ethics, Springer, vol. 92(4), pages 493-511, April.
    16. Jules Stuyck, 2005. "EC Competition Law After Modernisation: More than Ever in the Interest of Consumers," Journal of Consumer Policy, Springer, vol. 28(1), pages 1-30, November.
    17. Watkins, Alison & Hill, Ronald Paul, 2011. "Morality in marketing: Oxymoron or good business practice?," Journal of Business Research, Elsevier, vol. 64(8), pages 922-927, August.
    18. Marie-Laure Salles-Djelic, 2002. "Does Europe mean americanization? The case of competition," Post-Print hal-01892017, HAL.
    19. Ernst Fehr & Urs Fischbacher, 2004. "Social norms and human cooperation," Macroeconomics 0409026, University Library of Munich, Germany.
    20. Fontenot, Renee J. & Hyman, Michael R., 2004. "The antitrust implications of relationship marketing," Journal of Business Research, Elsevier, vol. 57(11), pages 1211-1221, November.
    21. Posner, Richard A, 1970. "A Statistical Study of Antitrust Enforcement," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 365-419, October.
    22. Sylvie Lacoste, 2012. ""Vertical coopetition": the key account perspective," Post-Print hal-00747162, HAL.
    23. Stephen W. Davies & Nigel L. Driffield & Roger Clarke, 1999. "Monopoly in the UK: What determines whether the MMC finds against the investigated firms?," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 263-283, September.
    24. Nigel Piercy & Nikala Lane, 2007. "Ethical and Moral Dilemmas Associated with Strategic Relationships between Business-to-Business Buyers and Sellers," Journal of Business Ethics, Springer, vol. 72(1), pages 87-102, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Herold, 2017. "Compliance Programs, Signaling and Firms' Internal Coordination," MAGKS Papers on Economics 201749, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Kei Kawai & Jun Nakabayashi & Juan Ortner & Sylvain Chassang, 2023. "Using Bid Rotation and Incumbency to Detect Collusion: A Regression Discontinuity Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(1), pages 376-403.
    3. Johannes Paha, 2013. "The Impact of Persistent Shocks and Concave Objective Functions on Collusive Behavior," MAGKS Papers on Economics 201328, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John K. Ashton & Andrew D. Pressey, 2007. "The Regulatory Perception of the Marketing Function: an Interpretation of UK Competition Authority Investigations 1950-2005," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2007-, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    2. Hüschelrath, Kai, 2008. "Is it Worth all the Trouble? The Costs and Benefits of Antitrust Enforcement," ZEW Discussion Papers 08-107, ZEW - Leibniz Centre for European Economic Research.
    3. Martin Carree & Andrea Günster & Maarten Schinkel, 2010. "European Antitrust Policy 1957–2004: An Analysis of Commission Decisions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(2), pages 97-131, March.
    4. Bergman, Mats A. & Jakobsson, Maria & Razo, Carlos, 2005. "An econometric analysis of the European Commission's merger decisions," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 717-737, December.
    5. Ghosal, Vivek, 2007. "Regime Shift in Antitrust," MPRA Paper 5460, University Library of Munich, Germany.
    6. Vivek Ghosal, 2008. "The Genesis Of Cartel Investigations: Some Insights From Examining The Dynamic Interrelationships Between U.S. Civil And Criminal Antitrust Investigations," Journal of Competition Law and Economics, Oxford University Press, vol. 4(1), pages 61-88.
    7. Sunel Grimbeek & Steve Koch & Richard Grimbeek, 2013. "The Consistency of Merger Decisions at the South African Competition Commission," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 561-580, December.
    8. Joseph A. Clougherty, 2005. "Industry Trade Balance And Domestic Merger Policy: Empirical Evidence From U.S. Merger Policy For Manufacturing Sectors," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 404-415, July.
    9. Büthe, Tim & Morgan, Stephen, 2015. "Antitrust Enforcement and Foreign Competition: Special Interest Theory Reconsidered," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205607, Agricultural and Applied Economics Association.
    10. Diego S. Cardoso & Mariusa M. Pitelli & Adelson M. Figueiredo, 2021. "An Econometric Analysis of the Brazilian Merger Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(1), pages 103-132, August.
    11. Robert Feinberg & Mieke Meurs & Kara Reynolds, 2012. "Maintaining New Markets: Explaining Antitrust Enforcement in Central and Eastern Europe," Journal of Industry, Competition and Trade, Springer, vol. 12(2), pages 203-219, June.
    12. Jordi Gual & Núria Mas, 2011. "Industry Characteristics and Anti-Competitive Behavior: Evidence from the European Commission’s Decisions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 39(3), pages 207-230, November.
    13. Ghosal Vivek, 2011. "The Law and Economics of Enhancing Cartel Enforcement: Using Information From Non-Cartel Investigations to Prosecute Cartels," Review of Law & Economics, De Gruyter, vol. 7(2), pages 501-538, December.
    14. Connor, John M., 2003. "Private International Cartels: Effectiveness, Welfare, And Anticartel Enforcement," Staff Papers 28645, Purdue University, Department of Agricultural Economics.
    15. Vivek Ghosal & D. Daniel Sokol, 2016. "Policy Innovations, Political Preferences, and Cartel Prosecutions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(4), pages 405-432, June.
    16. Margaret C. Levenstein & Valerie Y. Suslow, 2011. "Breaking Up Is Hard to Do: Determinants of Cartel Duration," Journal of Law and Economics, University of Chicago Press, vol. 54(2), pages 455-492.
    17. Richard J. Grimbeek & Sunel Grimbeek & Steven F. Koch, 2011. "The Consistency of Merger Decisions in a Developing Country: The South African Competition Commission," Working Papers 201117, University of Pretoria, Department of Economics.
    18. Ghosal, Vivek, 2006. "Discovering Cartels: Dynamic Interrelationships between Civil and Criminal Antitrust Investigations," MPRA Paper 5499, University Library of Munich, Germany.
    19. Marcos Avalos & Rafael E. De Hoyos, 2008. "An Empirical Analysis of Mexican Merger Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(2), pages 113-130, March.
    20. Davies, Stephen & Olczak, Matthew & Coles, Heather, 2011. "Tacit collusion, firm asymmetries and numbers: Evidence from EC merger cases," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 221-231, March.

    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:uea:ueaccp:2012_11. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Juliette Hardmad (email available below). General contact details of provider: https://edirc.repec.org/data/esueauk.html .

    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.