Funding la Cour, Lisbeth (Department of Economics, Copenhagen Business School) Møllegaard, H. Peter (University of Copenhagen,)
Abstract
We test econometrically whether the sole Danish producer of cement holds a dominant
position in the Danish market for (grey) cement. In import penetration tests, we find that its
pricing and quantity decisions are independent of import price and quantity, implying that it can
act to a considerable extent independently of its competitors. We also test whether it can act
independently of its customers and find that its demand is inelastic with respect to its price. It thus
holds a dominant position in the sense of the European Court of Justice. Having established
dominance, we go on to illustrate that based on our data, it is difficult to conclude that it has
abused its dominant position in the sense of the Court.
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Publisher Info
Paper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number
10-2000.
Length: 32 pages Date of creation: 06 Nov 2000 Date of revision: Handle: RePEc:hhs:cbsnow:2000_010
Contact details of provider: Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark Phone: 38 15 25 75 Fax: 38 15 26 65 Email: Web page: http://www.cbs.dk/departments/econ/ More information through EDIRC
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Find related papers by JEL classification: K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
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