Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Tuesday, March 13, 2012

CAREER DEVELOPMENT AFTER CARTEL PROSECUTION: CARTEL VERSUS NON-CARTEL MANAGERS

Posted by D. Daniel Sokol

N.S.R. Rosenboom (SEO Economic Research) has written on CAREER DEVELOPMENT AFTER CARTEL PROSECUTION: CARTEL VERSUS NON-CARTEL MANAGERS.

ABSTRACT: I examine the career development of managers after they have been subjected to cartel prosecution by the Netherlands Competition Authority (NMa). A representative function is used as an indicator for a career outcome after prosecution. I compare the career development of Dutch managers involved in a cartel with that of a control group of Dutch managers of non-cartel companies. I analyze the different factors that may influence the career development of cartel-involved managers. This article concludes that cartel-involved managers face negative career effects after the prosecution of the cartel. A cartel-involved manager has a lower probability of a representative function than another manager. This negative career effect is smaller if the cartel was active in the construction sector. This outcome might point at a different culture towards cartels in the construction sector in the Netherlands, which seems plausible considering the wide-ranging cartel that existed in this sector between 1998 and 2001.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/03/career-development-after-cartel-prosecution-cartel-versus-non-cartel-managers.html

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