Recidivism Revealed: Private International Cartels 1991-2009

47 Pages Posted: 9 Oct 2010  

John M. Connor

Purdue University; American Antitrust Institute (AAI)

Date Written: September 25, 2010

Abstract

The objective of this paper is to look for empirical regularities in the sample of 389 recidivists that engaged in international price-fixing in the past 20 years. Recidivism appears to be increasing rapidly, both in number and relative to all corporate cartelists. Recidivists are overwhelmingly headquartered in northern Europe or Japan, and they tend to be highly diversified multinational firms that sell homogeneous producer goods. The skills acquired from participating in multiple price conspiracies are transferable across divisional lines at very low marginal costs. Those acquired skills include identifying feasible collusive opportunities, negotiating mutually satisfactory deals, diplomatically dealing with partners when no enforceable contract exists, and evading detection by the antitrust authorities.

Suggested Citation

Connor, John M., Recidivism Revealed: Private International Cartels 1991-2009 (September 25, 2010). Available at SSRN: https://ssrn.com/abstract=1688508 or http://dx.doi.org/10.2139/ssrn.1688508

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