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Sustainability of collusion: evidence from the late 19th century basque iron and steel industry

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Author Info
Pedro Mendi (Universidad de Navarra)
Róbert F. Veszteg (Universidad Carlos III de Madrid)
Abstract

We examine the minutes of the executive committees of two Basque firms in the iron and steel industry, Altos Hornos de Bilbao and Vizcaya, to discuss the relevance of di􀀞erent factors on the survival and failure of the collusive agreements reached in the industry from 1886 to 1901. We observe intense communication among colluding parties during and after collusive arrangements. Collusion seems to be more likely to break down in periods of falling demand, while strong demand provides these agreements with stability. Additionally, the presence of centralized sales agencies, and similar degrees of vertical integration among colluding firms facilitate collusion.

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Publisher Info
Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 33 (2009)
Issue (Month): 3 (September)
Pages: 385-405
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Handle: RePEc:iec:inveco:v:33:y:2009:i:3:p:385-405

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Related research
Keywords: Market power; collusion; iron and steel industry.;

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
N84 - Economic History - - Micro-Business History - - - Europe: 1913-

References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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    Other versions:
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