The Influence of Collusion on Price Changes: New Evidence from Major Cartel Cases
Abstract
In this paper, we compare the distribution of price changes between collusive and noncollusive periods for ten major cartels. The first moments focus on previous research. We extend the discussion to the third (skewness) and fourth (kurtosis) moments. However, none of the above descriptive statistics can be considered as a robust test allowing a differentiation between competition and cartel. Therefore, we implement the Kolmogorov-Smirnov test. According to our results, 8 out of 10 cartels were successful in controlling the market price for a number of years. The proposed methodology may be used for antitrust screening and regulatory purposes.Download Info
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1004.Length: 17 p.
Date of creation: 2010
Date of revision:
Publication status: Published in: German Economic Review 13 (2012) 3, 245-256
Handle: RePEc:diw:diwwpp:dp1004
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Related research
Keywords: Cartel detection; collusion; competition policy;Other versions of this item:
- Korbinian Blanckenburg & Alexander Geist & Konstantin A. Kholodilin, 2012. "The Influence of Collusion on Price Changes: New Evidence from Major Cartel Cases," German Economic Review, Verein für Socialpolitik, vol. 13(3), pages 245-256, 08.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-29 (All new papers)
- NEP-COM-2010-05-29 (Industrial Competition)
- NEP-HIS-2010-05-29 (Business, Economic & Financial History)
- NEP-IND-2010-05-29 (Industrial Organization)
- NEP-MIC-2010-05-29 (Microeconomics)
- NEP-REG-2010-05-29 (Regulation)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Preißler-Jebe, Jan Hendrik & von Blanckenburg, Korbinian & Geist, Alexander, 2010.
"Comparing cartel behavior: A simulation analysis with the System of Cartel Markers (SCM),"
CAWM Discussion Papers
41, Center of Applied Economic Research Münster (CAWM), University of Münster.
- Jan Hendrik Preißler-Jebe, Korbinian von Blanckenburg, Alexander Geist, . "Comparing Cartel Behavior: A Simulation Analysis with the System of Cartel Markers (SCM)," Working Papers 201041, Institute of Spatial and Housing Economics, Munster Universitary.
- 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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