From Rules to Regs: A Structural Topic Model of Collusion Research
W. Benedikt Schmal
Collusive practices of firms continue to be a major threat to competition and consumer welfare. Academic research on this topic aims at understanding the economic drivers and behavioral patterns of cartels, among others, to guide competition authorities on how to tackle them. Utilizing topical machine learning techniques in the domain of natural language processing enables me to analyze the publications on this issue over more than 20 years in a novel way. Coming from a stylized oligopoly-game theory focus, researchers recently turned toward empirical case studies of bygone cartels. Uni- and multivariate time series analyses reveal that the latter did not supersede the former but filled a gap the decline in rule-based reasoning has left. Together with a tendency towards monocultures in topics covered and an endogenous constriction of the topic variety, the course of cartel research has changed notably: The variety of subjects included has grown, but the pluralism in economic questions addressed is in descent. It remains to be seen whether this will benefit or harm the cartel detection capabilities of authorities in the future.
econ.GN, q-fin.EC