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Polycentric governance in collusive agreements

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  • Schmal, W. Benedikt

Abstract

Collusive agreements in the form of corporate cartels are complex structures. The involved firms need to agree on terms that are legally not enforceable. However, the interplay between the involved firms in a collusive agreement, i.e., the governance dimension within a cartel, has received surprisingly low attention. Using a comprehensive OECD dataset of 191 cartels from 2012 to 2018, this paper empirically demonstrates how polycentric governance within a cartel may possibly contribute to understanding its stability. It may be beneficial for the duration and lower sanctions imposed by competition authorities, especially for large cartels. By that, the paper sheds new light on two aspects: the entangled governance structures of corporate cartels and the relevance of the concept of polycentricity beyond public administration.

Suggested Citation

  • Schmal, W. Benedikt, 2024. "Polycentric governance in collusive agreements," Journal of Institutional Economics, Cambridge University Press, vol. 20, pages 1-1, January.
    • Handle: RePEc:cup:jinsec:v:20:y:2024:i::p:-_38
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    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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