In this report Appelbaum's model is discussed in detail. The model is also applied to the Dutch construction sector, allowing the degree of collusion to be ascertained. The model consists of five equations. One equation, the mark-up equation, is derived from the assumption of profit maximization by firms. It is written in such a way that the degree to which firms (tacitly) collude serves as an explanatory variable for the mark-up. More specifically, the higher the observed mark-up the higher the degree of (tacit) collusion, other things being equal. Another equation, the demand equation describes the relation between sales, price and income. Furthermore, three equations are used to describe the factor demands. In an extended version of the model, the degree of collusion is endogenized by the variables net entry of firms and market concentration. The model is estimated simultaneously by FIML (method of full information maximum likelihood).
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM in its series Papers with number
9810/e.
Find related papers by JEL classification: L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices C5 - Mathematical and Quantitative Methods - - Econometric Modeling
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Gelderen, A.M. van & Frese, M. & Thurik, A.R., 2000.
"Strategies, Uncertainty and Performance of Small Business Startups,"
Research Paper
ERS-2000-18-STR Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]