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- A25 the total number of cartel members, including the subsidiaries of these firms that have also been addressees to the authorities’ decisions. Thus, FIRMSk denotes the total number of groups of firms that participated in cartel k, while SUBSIDIARIESk denotes the total number of subsidiaries that participated in cartel k. Metz et al. (2013) and Levenstein and Suslow (2010) find the number of cartel members to exert a positive impact on the hazard rate. In Dick (1996) and in Zhou (2012), the number of cartel members is shown to have a negative and statistically significant impact on the hazard of dissolution. Brenner (2005) finds that the number of cartel members affects cartel duration negatively in most of his specifications, but the estimates are not statistically significant.
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- Collusive Practices. PRCFIXk is a dummy variable that takes the value of one if cartel k’s members fixed prices or agreed upon simultaneous price increases. Dick (1996) finds that PRCFIXk has a positive, but insignificant impact on the risk of cartel death. ALLCTNk is another indicator variable that takes the value of one if cartel k’s members allocated customers 70 Such an estimate was reported by the anti-trust authorities only in a minority of the cases and these numbers usually correspond to a given year only.
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- International Cartels. The focus of this dataset will be on discovered and prosecuted private international cartels defined by Connor (2006) as “... a conspiracy in restraint of trade that has or is alleged to have one or more corporate or individual participants with headquarters, residency, or nationality outside the jurisdiction of the investigating antitrust authority.â€Â64 Thus far, the cartel dataset covers 173 private international cartels that existed between 1958 and 2010. A total of 48 countries (28 of which are OECD members) have participated in at least one of these cartels.
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- Moreover, we capture which anti-trust authority was responsible for first uncovering cartel k using five different dummy variables: DSCV R USk, DSCV R EUk, DSCV R CAk, DSCV R JOINTk, DSCV R OTHERk, which take the value of one if cartel k was discovered by, respectively, the US A27 authorities, EU authorities, Canadian authorities, jointly by multiple anti-trust bodies, or other anti-trust authorities (Australian Competition and Consumer Commission, for instance). Similarly, Metz et al. (2013) include dummy variables to control for the region of discovery - US, EU, and other in their case - and find them all to decrease the risk of cartel dissolution.
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