The Determinants of Cartel Duration in Brazil

Paulo Burnier da Silveira

No 2025-18, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper analyses the determinants of cartel duration by using a dataset of 120 cases sanctioned by the Brazilian Competition Authority (CADE) between 1999 and 2022, which corresponds to all cartels sanctioned by CADE in Brazil from its inception until December 2022. The research considers the starting and the ending dates of the infringement as indicated in the case files, and it reveals an average duration of 4 years per cartel. Around 20% of the cartels had a very short duration (less than 3 months), while the longest cartel durations were around 20 years per cartel (i.e. the cartels in the markets of cement, salt extraction and marine hoses). The research then focuses in exploring the key determinants that may affect the duration of cartels, including the affected economic sector, the number of defendants and the geographic scope (i.e. local, national or international cartel). For this purpose, the research provides a statistics description of the database, which includes more than 2.500 defendants and total fines of around 10 billion BRL (2 billion Euros). The paper also explores possible correlations between these key determinants and the duration of cartels, by applying tests to measure the intensity of the correlations and its statistical significance. Last, a cartel survival estimation based on a Kaplan-Meier modelling indicates the probability of a cartel surviving after a given number of years, and a regression exercise using OLS and WLS completes the analysis. The paper concludes with a summary of the key findings and suggestions for future work.

Keywords: Cartel duration; key determinants; correlation analysis; cartel survival estimation; Brazilian Competition Authority (CADE); economic analysis of competition law enforcement (search for similar items in EconPapers)
JEL-codes: C01 K21 L49 L51 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2025-18

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