Registered cartels in Austria: an overview

Author(s)
Nikolaus Fink, Philipp Schmidt-Dengler, Konrad O. Stahl, Christine Zulehner
Abstract

Cartels were legal to a large extent in Austria until the country's EU accession in 1995. We examine archival material on registered horizontal cartels to learn about their inner working. Applying content analysis to legally binding cartel contracts, we comprehensively document different collusion methods along the lines described by Stigler (J Political Econ 72:44-61, 1964). Quota cartels employ regular reporting schemes and use compensation mechanisms for departures from set quotas. Specialization cartels divide markets, and rely the least on information exchange and punishment. Price and payment condition cartels primarily aim to prevent secret price cuts, requiring information provision upon request, allow for discretionary decision-taking and (sometimes immediate) punishment. These stylized facts on the contractual arrangements suggest that the possibility to write legally binding agreements was employed to address the usual obstacles to sustain collusion.

Organisation(s)
Department of Economics
External organisation(s)
Rundfunk und Telekom Regulierungs-GmbH, Universität Mannheim, Johann Wolfgang Goethe-Universität Frankfurt am Main
Journal
European Journal of Law and Economics
Volume
44
Pages
385-422
No. of pages
38
ISSN
0929-1261
DOI
https://doi.org/10.1007/s10657-017-9564-5
Publication date
12-2017
Peer reviewed
Yes
Austrian Fields of Science 2012
502013 Industrial economics
Keywords
ASJC Scopus subject areas
Economics and Econometrics, Law, Business and International Management
Portal url
https://ucris.univie.ac.at/portal/en/publications/registered-cartels-in-austria-an-overview(01f1e14a-5858-4e38-8220-77ca52eeac25).html