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Measuring Market Conduct in the Brazilian Cement Industry: A Dynamic Econometric Investigation

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  • Rodrigo Zeidan

    ()

  • Marcelo Resende

    ()

Abstract

Indirect assessments of market conduct have become widespread in the New Empirical Industrial Organization-NEIO literature. Recently, Steen and Salvanes (1999) provided a flexible dynamic econometric formulation of the approach advanced by Bresnahan (1982) and Lau (1982). The present paper considers a similar approach as applied to regional cement markets in Brazil under more favorable data availability and it also attempts to address part of the critiques that usually emerge with respect to the NEIO literature. In particular, issues pertaining to structural stability and yet the control for the number of competing firms are addressed. The evidence clearly indicates non-negligible and distinct market power in the different regions and yet distinct conduct patterns in the short and long-run.

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Bibliographic Info

Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 34 (2009)
Issue (Month): 3 (May)
Pages: 231-244

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Handle: RePEc:kap:revind:v:34:y:2009:i:3:p:231-244

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Web page: http://www.springerlink.com/link.asp?id=100336

Related research

Keywords: New Empirical Industrial Organization; Error-correction mechanism; Cement market; L110; L130;

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References

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Cited by:
  1. Sylwester Bejger, 2011. "Polish cement industry cartel - preliminary examination of collusion existence," Business and Economic Horizons (BEH), Prague Development Center, Prague Development Center, vol. 4(1), pages 88-107, January.
  2. Aydin Çelen & Burak Gunalp, 2010. "Do Investigations of Competition Authorities Really Increase the Degree of Competition? An Answer From Turkish Cement Market," Prague Economic Papers, University of Economics, Prague, University of Economics, Prague, vol. 2010(2), pages 150-168.

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