Abstract
We expand the rational choice theory of crime, as applied to cartels, with three psychological factors—personal norms, social norms and social ties—and knowledge of competition law. Through a survey of Dutch businesses, we find that adding psychological factors substantially increases the explanatory power of the model: All predict attitudes toward future cartel behavior, with personal norms as the strongest (negative) predictor. Better knowledge of competition law relates to stronger deterrence and norms against collusion. We conclude that psychological factors and knowledge of the law are likely necessary to understand and prevent potential cartel behavior.
Original language | English |
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Pages (from-to) | 275-315 |
Number of pages | 41 |
Journal | Review of Industrial Organization |
Volume | 63 |
Issue number | 3 |
DOIs | |
Publication status | Published - Nov 2023 |
Bibliographical note
Publisher Copyright:© 2023, The Author(s).
Funding
We thank the editor, Lawrence J. White, and two anonymous referees for helpful comments. We thank Jan de Kok, Marianne van Marwijk-Hol, and Paul van der Zeijden for research assistance. Financial support of the ACM and the availability of the data for scientific purposes are gratefully acknowledged. The views that are expressed in this paper are those of the authors and do not necessarily reflect the official opinion of the ACM nor the AFM: the authors are fully responsible for the content of the paper.
Funders | Funder number |
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Anacostia Community Museum |
Keywords
- Cartels
- Competition law
- Compliance
- Deterrence
- Survey