It is not collusion unless you get caught: the case of ‘Operation Car Wash’ and unearthing of a Cartel

Signor, Regis and Love, Peter E. D. and Vallim, Joao Jose B. and Raupp, Alexandre B. and Olatunji, Oluwole ORCID: https://orcid.org/0000-0002-9726-4218 (2019) It is not collusion unless you get caught: the case of ‘Operation Car Wash’ and unearthing of a Cartel. Journal of Antitrust Enforcement, 7 (2). pp. 177-202. ISSN 2050-0688


Abstract

In this article, we present findings from the Brazilian Federal Police's ongoing investigation referred to as 'Operation Car Wash', which led to an accusation of collusive bidding being presented to a cartel that comprised 16 construction contractors. While plea bargains from several contractors within the cartel have materialized, additional evidence needs to be provided by the investigations officials to ensure the adequate application of justice. In this article, we provide scientific evidence that can be used by the Brazilian criminal courts to demonstrate the presence of collusive bidding. The contributions of this article are two-fold: (i) a robust and reliable econometric model to prove the presence of collusive bidding is implemented, which meets the basic criteria defined by the judicial system for scientific evidence; and (ii) the negative economic impact of collusive bid rigging is quantified, which was much higher than the percentage admitted by those involved in their leniency agreements.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 04 May 2022 02:02
Last Modified: 31 May 2022 02:55
Uncontrolled Keywords: Cartel; Econometric model; Economic harm; Price fixing
Fields of Research (2020): 33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330299 Building not elsewhere classified
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330207 Quantity surveying
33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330203 Building industry studies
Socio-Economic Objectives (2020): 12 CONSTRUCTION > 1299 Other construction > 129999 Other construction not elsewhere classified
Identification Number or DOI: https://doi.org/10.1093/jaenfo/jnz009
URI: http://eprints.usq.edu.au/id/eprint/48102

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