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Archer Daniels Midland:Price Fixer To The World

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  • John M. Connor

    (Department of Agricultural Economics, College of Agriculture, Purdue University)

Abstract

Both market structure and corporate practices of Archer Daniels Midland fostered the implementation of the largest price-fixing conspiracies seen in modern times. The overcharges imposed on U.S. buyers of lysine and citric acid during 1994-1995 by ADM and its co-conspirators amounted to at least $250 million, and the total amount of public penalties, private damages, and legal costs exceeds $666 million. Perpetrators of price-fixing now face monetary exposures that are five times the amount of the harm caused to buyers. These events have spurred renewed attention by U.S. antitrust authorities in prosecuting international cartels.

Suggested Citation

  • John M. Connor, 2000. "Archer Daniels Midland:Price Fixer To The World," Working Papers 00-11, Purdue University, College of Agriculture, Department of Agricultural Economics.
    • Handle: RePEc:pae:wpaper:00-11
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    Cited by:

    1. Sylwester Bejger, 2015. "Screening for competition failures: some remarks on horizontal anticompetitive behavior visual detection," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 14(2), pages 169-188, June.
    2. Bolotova, Yuliya & Connor, John M. & Miller, Douglas J., 2008. "The impact of collusion on price behavior: Empirical results from two recent cases," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1290-1307, November.
    3. John Connor, 2001. "Preface – Forensic Economics in Action: The Lysine Cartel," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 1-4, February.
    4. Böcker, A. & Herrmann, R., 2001. "Internationale Kartelle in der Ernährungswirtschaft und die Möglichkeit der neuen Industrieökonomie zur Festlegung von Kollusion," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    5. John M. Connor, 1998. "The global citric acid conspiracy: Legal-economic lessons," Agribusiness, John Wiley & Sons, Ltd., vol. 14(6), pages 435-452.
    6. Hans W. Friederiszick & Frank P. Maier-Rigaud, 2008. "Triggering Inspections Ex Officio: Moving Beyond A Passive Eu Cartel Policy," Journal of Competition Law and Economics, Oxford University Press, vol. 4(1), pages 89-113.
    7. 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.
    8. C. Taylor, 2001. "Indirect Damages from Price Fixing: The Alabama Lysine Case," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 33-43, February.
    9. Sylwester Bejger & Joanna Bruzda, 2011. "Detection of Collusion Equilibrium in an Industry with Application of Wavelet Analysis," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 11, pages 155-170.
    10. Catherine ROUX & Thomas VON UNGERN-STERNBERG, 2007. "Leniency Programs in a Multimarket Setting: Amnesty Plus and Penalty Plus," Cahiers de Recherches Economiques du Département d'économie 07.03, Université de Lausanne, Faculté des HEC, Département d’économie.
    11. Joseph E. Harrington, 2004. "Post‐Cartel Pricing During Litigation," Journal of Industrial Economics, Wiley Blackwell, vol. 52(4), pages 517-533, December.
    12. John M. Connor, 2003. "Private International Cartels: Effectiveness, Welfare, and Anticartel Enforcement," Working Papers 03-12, Purdue University, College of Agriculture, Department of Agricultural Economics.
    13. Connor, John M., 2002. "THE FOOD AND AGRICULTURAL GLOBAL CARTELS OF THE 1990s: OVERVIEW AND UPDATE," Staff Papers 28631, Purdue University, Department of Agricultural Economics.
    14. Lawrence White, 2001. "Lysine and Price Fixing: How Long? How Severe?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 23-31, February.
    15. John Connor, 2001. "“Our Customers Are Our Enemies”: The Lysine Cartel of 1992–1995," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 5-21, February.
    16. Fagart, Thomas, 2022. "Collusion in capacity under irreversible investment," International Journal of Industrial Organization, Elsevier, vol. 81(C).
    17. Sylwester Bejger, 2009. "Econometric Tools for Detection of Collusion Equilibrium in the Industry," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 9, pages 27-38.
    18. John M. Connor, 2008. "Forensic Economics: An Introduction With Special Emphasis On Price Fixing," Journal of Competition Law and Economics, Oxford University Press, vol. 4(1), pages 31-59.
    19. de Roos, Nicolas, 2004. "A model of collusion timing," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 351-387, March.
    20. Marcel Boyer & Rachidi Kotchoni, 2011. "The Econometrics of Cartel Overcharges," CIRANO Working Papers 2011s-35, CIRANO.
    21. Hoekman, Bernard & Martin, Will, 2012. "Reducing distortions in international commodity markets : an agenda for multilateral cooperation," Policy Research Working Paper Series 5928, The World Bank.
    22. Bejger, Sylwester, 2010. "Collusion and seasonality of market price - A case of fixed market shares," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 2(2), pages 1-12, July.

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