When do firms leave cartels? Determinants and the impact on cartel survival

Arbeitspapier

We use a dataset of 615 firms which participated in 114 illegal cartels - convicted by the European Commission between 1999 and 2016 - to investigate the determinants of the duration of a firm's participation in a cartel. Applying a Weibull proportional hazard model with a particular focus on the impact of internal and external time-varying determinants, we find that firms show an increased probability to leave a cartel if prior exits occurred as well as in periods of high demand growth. However, we find a reduced exit probability in situations of prior entries to the cartel or in periods of high interest rates. Additional estimations on the cartel level further suggest that firm exits increase the probability of a cartel breakdown substantially.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ZEW Discussion Papers ; No. 17-002

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Duration Analysis; Optimal Timing Strategies ; Antitrust Law ; Monopolization; Horizontal Anticompetitive Practices
• Thema: Survival Analysis ; Cartels ; Duration ; European Union

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hellwig, Michael ; Hüschelrath, Kai
• Ereignis: Veröffentlichung
• (wer): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (wo): Mannheim
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/148923
• URN: urn:nbn:de:bsz:180-madoc-418869
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ