Integrating Norms, Knowledge, and Social Ties into the Deterrence Model of Cartels: A Survey Study of Business Executives

We expand the rational choice theory of crime, as applied to cartels, with three psychological factors—personal norms, social norms and social ties—and knowledge of competition law. Through a survey of Dutch businesses, we find that adding psychological factors substantially increases the explanator...

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Veröffentlicht in:Review of industrial organization 2023-11, Vol.63 (3), p.275-315
Hauptverfasser: van Stekelenburg, Loet, Dijkstra, Peter T., van Steenbergen, Elianne F., Mastop, Jessanne, Ellemers, Naomi
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container_title Review of industrial organization
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creator van Stekelenburg, Loet
Dijkstra, Peter T.
van Steenbergen, Elianne F.
Mastop, Jessanne
Ellemers, Naomi
description We expand the rational choice theory of crime, as applied to cartels, with three psychological factors—personal norms, social norms and social ties—and knowledge of competition law. Through a survey of Dutch businesses, we find that adding psychological factors substantially increases the explanatory power of the model: All predict attitudes toward future cartel behavior, with personal norms as the strongest (negative) predictor. Better knowledge of competition law relates to stronger deterrence and norms against collusion. We conclude that psychological factors and knowledge of the law are likely necessary to understand and prevent potential cartel behavior.
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source PAIS Index; SpringerNature Journals; EBSCOhost Business Source Complete
subjects Cartels
Competition policy
Costs
Crime
Deterrence
Economics
Economics and Finance
Enforcement
Executives (Business)
Fines & penalties
Hypotheses
Industrial Organization
Knowledge
Law
Microeconomics
Perceptions
Polls & surveys
Profits
Psychological aspects
Rational choice
Social norms
title Integrating Norms, Knowledge, and Social Ties into the Deterrence Model of Cartels: A Survey Study of Business Executives
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