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

64 Pages Posted: 4 Sep 2018

Date Written: August 24, 2018

Abstract

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.

Keywords: collusion, hub-and-spoke cartels, antitrust, competition law

JEL Classification: L13, L41

Suggested Citation

Harrington Jr, Joseph E., How Do Hub-and-Spoke Cartels Operate? Lessons from Nine Case Studies (August 24, 2018). Available at SSRN: https://ssrn.com/abstract=3238244 or http://dx.doi.org/10.2139/ssrn.3238244

Joseph E. Harrington Jr (Contact Author)

University of Pennsylvania ( email )

Philadelphia, PA 19102
Philadelphia, PA 19104

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