How Do Hub-and-Spoke Cartels Operate? Lessons from Nine Case Studies

Posted by Social Science Research Network

How Do Hub-and-Spoke Cartels Operate? Lessons from Nine Case Studies

By Joseph E. Harrington Jr

Hub-and-spoke collusion is when firms in a market coordinate their conduct by communicating through an upstream supplier or downstream customer. This study examines nine hub-and-spoke cartels towards understanding how they operate: What is the collusive scheme? How do firms achieve mutual understanding regarding that scheme? What is the role played by the hub? How effective is hub-and-spoke collusion? The paper also discusses legal approaches to hub-and-spoke collusion.

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