Integrating norms, knowledge and social ties into the deterrence model of cartels: A survey study of business executives

L. van Stekelenburg; P.R. Dijkstra; E.F. van Steenbergen; J. Mastop; N. Ellemers

doi:10.1007/s11151-023-09909-x

Integrating norms, knowledge and social ties into the deterrence model of cartels: A survey study of business executives

L. van Stekelenburg
, P.R. Dijkstra
, E.F. van Steenbergen
, J. Mastop
, N. Ellemers

ACM (Autoriteit Consument en Markt)
Utrecht University
Dutch Authority for the Financial Markets (AFM), Autoriteit Financiële Markten

Research output: Contribution to journal › Article › Academic › peer-review

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
Pages (from-to)	275-315
Number of pages	41
Journal	Review of Industrial Organization
Volume	63
Issue number	3
DOIs	https://doi.org/10.1007/s11151-023-09909-x
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
Anacostia Community Museum

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 16 Peace, Justice and Strong Institutions

Keywords

Cartels
Competition law
Compliance
Deterrence
Survey

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10.1007/s11151-023-09909-xLicence: CC BY

s11151-023-09909-xFinal published version, 1.1 MBLicence: CC BY

Cite this

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KW - Survey

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Integrating norms, knowledge and social ties into the deterrence model of cartels: A survey study of business executives

Abstract

Bibliographical note

Funding

UN SDGs

Keywords

Access to Document

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