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Tuesday, March 29, 2022 at 11:15am to 12:45pm
Virtual EventRobert Clark, Queen's University, Ontario-Canada
Hub-and-spoke cartels: Theory and evidence from the grocery industry.
Abstract: 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.
No paper available.
Dial-In Information
If you are interested participating in this seminar, please email Ulrike Kroeller at uab1@cornell.edu for Zoom information.
Ulrike Kroeller
6072554254
Robert Clark
Queen's University-Canada
Cornell Economics Commnity (List Service Mambers)