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The Welfare Implications of the European Trucks Cartel

Author

Listed:
  • Christian Beyer

    (Ostwestfalen-Lippe University of Applied Sciences)

  • Elke Kottmann

    (Ostwestfalen-Lippe University of Applied Sciences)

  • Korbinian von Blanckenburg

    (Ostwestfalen-Lippe University of Applied Sciences)

Abstract

We present a pragmatic approach to calculating the total economic loss induced by a cartel, focusing on the European trucks cartel (1997-2011). Overall, we estimate a net welfare loss up to € 15.5 bn. and an overcharge to the amount of 7.6%. Our approach builds on the theory of monopoly pricing and uses the publicly available profit data of the infringing companies. It is comprehensible, transparent, and applicable to collusion on list prices, what makes it particularly relevant for both policymakers and practitioners.

Suggested Citation

  • Christian Beyer & Elke Kottmann & Korbinian von Blanckenburg, 2018. "The Welfare Implications of the European Trucks Cartel," MAGKS Papers on Economics 201818, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201818
    as

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    File URL: https://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2018/18-2018_beyer.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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