1 option
Hub and Spoke Cartels: Theory and Evidence from the Grocery Industry / Robert Clark, Ignatius Horstmann, Jean-François Houde.
- Format:
- Book
- Author/Creator:
- Clark, Robert.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w29253.
- NBER working paper series no. w29253
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2021.
- Summary:
- Numerous recently uncovered cartels operated along the supply chain, with firms at one end facilitating collusion at the other - hub-and-spoke arrangements. These cartels are hard to rationalize because they induce double marginalization and higher costs. We examine Canada's alleged bread cartel and provide the first comprehensive analysis of hub-and-spoke collusion. We make three contributions: i) Using court documents and pricing data we provide evidence that collusion existed at both ends of the supply chain, ii) we show that collusion was effective, increasing inflation by about 40% and iii) we provide a model explaining why this form of collusion arose.
- Notes:
- Print version record
- September 2021.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.