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Collusion in the Dutch waste collection market

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Author Info

  • E. Dijkgraaf

    (Erasmus University Rotterdam, ECRi, SEOR)

  • R. H. J. M. Gradus

    (Erasmus University Rotterdam, Vrije Universiteit Amsterdam)

Abstract

In this paper we analyse whether collusion exists in the Dutch waste collection market, which shows a high degree of concentration. Although scale effects might be in accordance with this market outcome, the question is whether this concentration is in fact a result of fair competition. Using data for (nearly) all Dutch municipalities we estimate whether collusion exists and what the impact is on tariffs for waste collection. The results indicate that high concentration increases prices and therefore (partly) offsets the advantage of contracting out. The presence of competing public firms might be essential to ensure more and fair competition.

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File URL: http://128.118.178.162/eps/io/papers/0502/0502006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0502006.

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Length: 25 pages
Date of creation: 08 Feb 2005
Date of revision:
Handle: RePEc:wpa:wuwpio:0502006

Note: Type of Document - pdf; pages: 25
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Web page: http://128.118.178.162

Related research

Keywords: Waste collection; collusion; public-private firms; contracting out;

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Cited by:
  1. Xavier Fageda & Germa Bel, 2008. "Choosing hybrid organizations for local servicesdelivery: An empirical analysis of partial privatization," IREA Working Papers 200803, University of Barcelona, Research Institute of Applied Economics, revised Apr 2008.
  2. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
  3. Germà Bel & Melania Mur, 2008. "Intermunicipal cooperation and privatization of solid waste services among small municipalities in Spain," IREA Working Papers 200816, University of Barcelona, Research Institute of Applied Economics, revised Dec 2008.
  4. Mildred E. Warner, 2012. "Does Local Government Size Matter? Privatization and Hybrid Systems of Local Service Delivery," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1212, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  5. Germà Bel & Xavier Fageda, 2008. "Privatization and competition in the delivery of local services: An empirical examination of the dual market hypothesis," Working Papers XREAP2008-04, Xarxa de Referència en Economia Aplicada (XREAP), revised Apr 2008.

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