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On the sociology of cartels

Author

Listed:
  • Justus Haucap

    (Heinrich-Heine-University Düsseldorf)

  • Christina Heldman

    (Heinrich-Heine-University Düsseldorf)

Abstract

We analyze 15 German cartels, focusing on the personal characteristics of the individual participants, the methods and frequency of communication as well as the internal organizational structures within the cartels and their eventual breakup. Our results indicate that cartel members are highly homogeneous and often rely on existing networks within the industry, such as trade associations. Most impressively, only two of the 158 individuals involved in these 15 cartels were female, suggesting that gender plays a role for cartel formation. We further identify various forms of communication and divisions of responsibilities and show that leniency programs are a powerful tool in breaking up cartels. Based on these results we discuss implications for competition policy and further research.

Suggested Citation

  • Justus Haucap & Christina Heldman, 2023. "On the sociology of cartels," European Journal of Law and Economics, Springer, vol. 56(2), pages 289-323, October.
    • Handle: RePEc:kap:ejlwec:v:56:y:2023:i:2:d:10.1007_s10657-023-09780-x
    DOI: 10.1007/s10657-023-09780-x
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    More about this item

    Keywords

    Cartels; Collusion; Social networks; Trust; Antitrust;
    All these keywords.

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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