Antitrust & Competition Policy Blog

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

Monday, April 21, 2014

Hub and spoke collusion by embargo

Patrick VAN CAYSEELE and Simon MIEGIELSEN describe Hub and spoke collusion by embargo.

ABSTRACT: A common supplier (the hub) could try to enforce a collusive outcome between his buyers (the spokes) if they are unable to sustain such an agreement among themselves. We derive necessary and sufficient conditions under which the hub is willing to assume the policing role in a cartel.

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