Corporate Collusion in the Petroleum and Defense Industries: A Theoretical Approach

Abstract

While interlocking directorates have been misused in Corporate America for decades, traditionally this misuse is in violation of the various antitrust act legislations. Since corporate collusion generally occurs between companies in common industries, and most often involves price fixing or manipulating supply of a product to yield greater pricing and profits, these antitrust violations are often a foregone conclusion. This case study analyzes a type of corporate collusion through interlocking directorates that is far more ominous, exploring the power of interlocking directorates and demonstrating how they may have been misused to manipulate foreign policy and military strategies, and in this case study, how the petroleum and defense industries may have benefitted from these actions.