Cartel stability: how did the truck cartel last for 14 years and why did it fall?

In an environment where most studies related to cartels are either theoretical or crosssectional empirical studies, we choose to focus on one specific case with the belief that it can prove insightful. In 2016, an economic cartel formed by six truck manufacturers received the highest fine ever imposed on a cartel by the European Commission to date, €3.81 billion. Having lasted from 1997 to 2011, it seems reasonable to wonder how such a cartel has been able to last for over fourteen years and why it eventually collapsed. In an attempt to answer these interrogations, we examine the cartel’s characteristics to see how they fit against the determinants of cartel stability identified in the existing literature. To further substantiate our analysis we provide a discussion on the possible implications of our findings for both the industrial organization literature and antitrust policy.