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Corporate Cartels as a Criminal Network

Florian Thierry-Coudon ()
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Florian Thierry-Coudon: CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas

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Abstract: Firms may belong to many cartels, resulting in interconnected networks of corporate cartels that share practices, strategies, and information. Consequently, each firm can be viewed as a node, and each cartel as the links between those nodes within a larger network of cartels. Using Graph Theory, we develop a model of collusive behavior within a network of cartels to examine how its organization affects their stability. Firms face a "centrality trade-off": the more cartels they belong to, the higher their profits, but the less stable each cartel is. We characterize one general network shape that maximizes cartel stability: the denser the network, the more stable the cartels. In other words, cartels are more resilient when firms participate in multiple overlapping cartels.

Keywords: Cartels; Network; Antitrust; Recidivism (search for similar items in EconPapers)
Date: 2025-10
Note: View the original document on HAL open archive server: https://univ-pantheon-assas.hal.science/hal-05327815v1
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