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Screening for Collusion: A Spatial Statistics Approach

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Author Info

  • Pim Heijnen

    (University of Groningen)

  • Marco A. Haan

    (University of Groningen)

  • Adriaan R. Soetevent

    (University of Amsterdam)

Abstract

We develop a method to screen for local cartels. We first test whether there is statistical evidence of clustering of outlets that score high on some characteristic that is consistent with collusive behavior. If so, we determine in a second step the most suspicious regions where further antitrust investigation would be warranted. We apply our method to build a variance screen for the Dutch gasoline market.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-058/1.

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Date of creation: 18 Jun 2012
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Handle: RePEc:dgr:uvatin:20120058

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Web page: http://www.tinbergen.nl

Related research

Keywords: collusion; variance screen; spatial statistics; K-function;

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References

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  1. Kyle Bagwell, 2004. "Collusion and Price Rigidity," Theory workshop papers, UCLA Department of Economics 658612000000000081, UCLA Department of Economics.
  2. Juan Luís Jiménez & Jordi Perdiguero, 2009. "(No)competition in the Spanish retailing gasoline market: a variance filter approach," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2009-05, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2009.
  3. Adriaan R. Soetevent & Marco A. Haan & Pim Heijnen, 2008. "Do Auctions and Forced Divestitures increase Competition?," Tinbergen Institute Discussion Papers, Tinbergen Institute 08-117/1, Tinbergen Institute, revised 02 Aug 2011.
  4. Abrantes-Metz, Rosa M. & Froeb, Luke M. & Geweke, John & Taylor, Christopher T., 2006. "A variance screen for collusion," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 24(3), pages 467-486, May.
  5. Picone, Gabriel A. & Ridley, David B. & Zandbergen, Paul A., 2009. "Distance decreases with differentiation: Strategic agglomeration by retailers," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 27(3), pages 463-473, May.
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Cited by:
  1. Korbinian von Blanckenburg & Marc Hanfeld & Konstantin A. Kholodilin, 2013. "A Market Screening Model for Price Inconstancies: Empirical Evidence from German Electricity Markets," Discussion Papers of DIW Berlin 1274, DIW Berlin, German Institute for Economic Research.

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