Abstract
One of the most harmful competition infringements are cartels, which make damages to national economy. In some markets the cartels are detected fast enough, while in others they exist for decades. It is important to identify and explore the characteristics of the markets with increased cartelization risks. The theoretical identification of evidence suggesting the existence of a cartel in a market and factual comparison with the real market situation may represent the preliminary stage in the cartel detection process and verification of cartel existence. The paper analyzes the characteristics of cartel markets, the factors, indicating higher risks of market exposure to cartelization as compared to other markets and the economic factors evidencing cartel existence. The empirical analysis is based on Lithuanian cases. This country is chosen because it corresponds to the features of the small economy with developing culture of competition. On the base of the theoretical analysis, the Lithuanian markets, where cartels were not found, but there’s a greater chance that the cartels operate in these markets, are identified. The key economic factors, which have an impact on “Lithuanian” cartel formation, are presented also in the article.
This research was funded by a grant (No. IEP-01/2012) from the Research Council of Lithuania.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Bouwens, B., & Dankers, J. (2005). Sharing success: Cartels as an answer to the dynamics of business capitalism, 1900–1940. Accessed May 22, 2014, from http://www.bintproject.nl/textfiles/2005_bouwens-dankers.pdf
Connor, J. (2008). Global price fixing (Studies in industrial organization) (2nd ed.). Berlin: Springer.
Degutis, A. (2010). Konkurencija, monopolija ir karteliai [Competition, monopoly and cartels]. Vilnius: Lithuanian free market institute.
Friederiszick, H. W., & Röller, L. H. (2010). Quantification of harm in damages. Actions for antitrust infringements: Insights from German cartel cases. Journal of Competition Law and Economics, 6(3), 595–618.
Grout, P. A., & Sonderegger, S. (2005). Predicting cartels. Economic discussion paper. Accessed May 23, 2014, from http://www.oft.gov.uk/shared_oft/reports/comp_policy/oft773.pdf
Harrington, J. E. (2006). How do cartels operate? Foundations and trends in microeconomics. Accessed May 20, 2014, from http://econ.jhu.edu/wp-content/uploads/pdf/papers/wp531harrington.pdf
Hüschelrath, K. (2009). Detection of anticompetitive horizontal mergers. Competition Law and Economics, 5(4), 683–721.
Hüschelrath, K., & Weigand, J. (2010). Fighting hard core cartels (Discussions Papers 10-084). ZEW. Accessed January 20, 2014, from https://ftp.zew.de/pub/zew-docs/dp/dp10084.pdf
Klimašauskienė, D. (2006). Konkurencijos politika: teorija ir praktikos aktualijos [Competition policy: The actualities of theory and practice]. Public Administration, 10, 43–50.
Levenstein, M. C., & Suslow, V. Y. (2004). Contemporary international cartels and developing countries: Economic effects and implications for competition policy. Antitrust Law Journal, 71(3), 801–852.
Lipczynski, J., Wilson, J., & Goddard, J. (2006). Industrial organization. Competition, strategy, policy (2nd ed.). Essex: Prentice Hall.
London Economics. (2011). The nature and impact of hardcore cartels. London Economics—Competition economics. Accessed February 5, 2014, from http://www.londecon.co.uk/publication/the-nature-and-impact-of-hardcore-cartels
Marshall, R. C., & Marx, L. M. (2012). The economics of collusion: Cartels and bidding rings. Cambridge, MA: MIT Press.
Martin, S. (2000). Competition policies in Europe. Amsterdam: Elsevier Science, B.V.
Novosad, A. (2012). Baudų, skiriamų už Lietuvos respublikos konkurencijos įstatymo pažeidimus, dydžio nustatymo tvarkos naujovės [Novelties of method of setting fines imposed for infringements of the Lithuanian law on competition]. Societal Innovations for Global Growth, 1(1). Accessed February 1, 2014, from http://socin.mruni.eu/wp-content/uploads/2012/12/A_2012-12-261.pdf#page=176
OECD. (2013). Ex-officio cartel investigations and the use of screens to detect cartels [online]. Accessed February 15, 2014, from http://www.oecd.org/daf/competition/exofficio-cartel-investigations.htm
Pepall, L., Richards, D., & Norman, G. (2008). Industrial organization: Contemporary theory and empirical applications (4th ed.). Malden, MA: Wiley-Blackwell.
Rey, P. (2006). On the use of economic analysis cartel detection. http://www.eui.eu/RSCAS/Research/Competition/2006(pdf)/200610-COMPed-Rey.pdf
Stanikūnas, R. (2009). Konkurencijos politika: teorija ir praktika [Competition policy: Theory and practice]. Monograph. TEV, Vilnius.
Utton, M. A. (2011). Cartels and economic collusion: The persistence of corporate conspiracies. Cheltenham: Edward Elgar Publishing.
Veljanovski, C. (2006). The economics of cartels. Finnish competition law yearbook [online]. Accessed May 15, 2014, from http://ssrn.com/abstract=975612
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Bruneckiene, J., Pekarskiene, I. (2016). The Specific of Cartel Markets in the Countries of Developing Culture of Competition. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Business Challenges in the Changing Economic Landscape - Vol. 2. Eurasian Studies in Business and Economics, vol 2/2. Springer, Cham. https://doi.org/10.1007/978-3-319-22593-7_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-22593-7_6
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-22592-0
Online ISBN: 978-3-319-22593-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)