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Polish cement industry cartel - preliminary examination of collusion existence

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  • Sylwester Bejger

    ()
    (Faculty of Economics and Management Nicholas Copernicus University of Torun, Poland)

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    Abstract

    The paper is devoted to a case of a cartel in Polish cement industry. Short description of the industry and characteristics of the cartel with its fundamental illegal practices, market sharing and price fixing have been done. We focused on examination of possibility of detection of a cartel like behavior of players in an industry on a basis of cartel markers’ evaluation, using statistical data we can actually obtain. On a basis of examination of market shares of players and price/supply processes we found distinctive, theoretically motivated patterns characteristic for collusive equilibrium in an industry.

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    Bibliographic Info

    Article provided by Prague Development Center in its journal Business and Economic Horizons (BEH).

    Volume (Year): 4 (2011)
    Issue (Month): 1 (January)
    Pages: 88-107

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    Handle: RePEc:pdc:jrnbeh:v:4:y:2011:i:1:p:88-107

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    Related research

    Keywords: Cartel detection; collusion markers; industry studies; cement market.;

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    References

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    1. Christian Lorenz, 2008. "Screening markets for cartel detection: collusive markers in the CFD cartel-audit," European Journal of Law and Economics, Springer, vol. 26(2), pages 213-232, October.
    2. Korbinian Blanckenburg & Alexander Geist, 2009. "How Can a Cartel Be Detected?," International Advances in Economic Research, Springer, vol. 15(4), pages 421-436, November.
    3. de Roos, Nicolas, 2004. "A model of collusion timing," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 351-387, March.
    4. Rodrigo M. Zeidan & Marcelo Resende, 2005. "Measuring Market Conduct in the Brazilian Cement Industry: a Dynamic Econometric Investigation," Economics Working Papers ECO2005/13, European University Institute.
    5. Harrington, Joseph E., 2006. "How Do Cartels Operate?," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(1), pages 1-105, August.
    6. Steen, Frode & Sorgard, Lars, 1999. "Semicollusion in the Norwegian cement market," European Economic Review, Elsevier, vol. 43(9), pages 1775-1796, October.
    7. Lars-Hendrik R�ller & Frode Steen, 2006. "On the Workings of a Cartel: Evidence from the Norwegian Cement Industry," American Economic Review, American Economic Association, vol. 96(1), pages 321-338, March.
    8. John Connor & C. Gustav Helmers, 2006. "Statistics On Modern Private International Cartels, 1990-2005," Working Papers 06-11, Purdue University, College of Agriculture, Department of Agricultural Economics.
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