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In Which Industries is Collusion More Likely? Evidence from the UK

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  • George Symeonidis

    () (University of Essex, Colchester, UK)

Abstract

I examine the factors facilitating or hindering collusion using a comprehensive data set on the incidence of price-fixing across UK manufacturing industries in the 1950s. The econometric results suggest that collusion is more likely the higher the degree of capital intensity and less likely in advertising-intensive than in low-advertising industries. There is also some evidence of a non-monotonic relationship between market growth and the likelihood of collusion. There is no clear link between concentration and the incidence of collusion. Copyright Blackwell Publishing Ltd 2003.

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  • George Symeonidis, 2003. "In Which Industries is Collusion More Likely? Evidence from the UK," Journal of Industrial Economics, Wiley Blackwell, vol. 51(1), pages 45-74, March.
  • Handle: RePEc:bla:jindec:v:51:y:2003:i:1:p:45-74
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    Cited by:

    1. Etienne Billette de Villemeur & Laurent Flochel & Bruno Versaevel, 2013. "Optimal collusion with limited liability," International Journal of Economic Theory, The International Society for Economic Theory, vol. 9(3), pages 203-227, September.
    2. World Bank, 2013. "Republic of Turkey Reform for Competitiveness Technical Assistance : Fostering Open and Efficient Markets through Effective Competition Policies," World Bank Other Operational Studies 17010, The World Bank.
    3. Swoboda, Sandra Maria, 2017. "Einfluss ausgewählter Determinanten auf die Kartellbildung und -stabilität: Eine Literaturstudie," Arbeitspapiere 176, University of Münster, Institute for Cooperatives.
    4. Garrod, Luke & Olczak, Matthew, 2016. "Collusion, Firm Numbers and Asymmetries Revisited," MPRA Paper 74352, University Library of Munich, Germany.
    5. Vives, Xavier, 2004. "Innovation and Competitive Pressure," CEPR Discussion Papers 4369, C.E.P.R. Discussion Papers.
    6. Nelson Sá, 2015. "Market concentration and persuasive advertising: a theoretical approach," Journal of Economics, Springer, vol. 114(2), pages 127-151, March.
    7. João Correia-da-Silva & Joana Pinho & Hélder Vasconcelos, 2016. "Sustaining collusion in markets with entry driven by balanced growth," Journal of Economics, Springer, vol. 118(1), pages 1-34, May.
    8. repec:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-017-9564-5 is not listed on IDEAS
    9. Marcel Canoy & Patrick Rey & Eric van Damme, 2004. "Dominance and Monopolization," Chapters,in: The International Handbook of Competition, chapter 7 Edward Elgar Publishing.
    10. Flochel, Laurent & Versaevel, Bruno & de Villemeur, Étienne, 2009. "Optimal Collusion with Limited Liability and Policy Implications," IDEI Working Papers 547, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jul 2011.
    11. Jordi Gual & Núria Mas, 2011. "Industry Characteristics and Anti-Competitive Behavior: Evidence from the European Commission’s Decisions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 39(3), pages 207-230, November.
    12. George Symeonidis, 2011. "Competition and the relative productivity of large and small firms," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3253-3264.
    13. Hyytinen, Ari & Steen, Frode & Toivanen, Otto, 2012. "Anatomy of Cartel Contracts," Discussion Paper Series in Economics 25/2012, Norwegian School of Economics, Department of Economics.
    14. Etienne Billette de Villemeur & Laurent Flochel & Bruno Versaevel, 2009. "Optimal Collusion with Limited Severity Constraint," Post-Print halshs-00375798, HAL.
    15. Goto, Ujo & Iizuka, Toshiaki, 2016. "Cartel sustainability in retail markets: Evidence from a health service sector," International Journal of Industrial Organization, Elsevier, vol. 49(C), pages 36-58.
    16. repec:eee:eecrev:v:97:y:2017:i:c:p:42-56 is not listed on IDEAS
    17. Ferr�s, Daniel & Ormazabal, Gaizka & Povel, Paul & Sertsios, Giorgio, 2017. "Capital Structure Under Collusion," CEPR Discussion Papers 12151, C.E.P.R. Discussion Papers.
    18. João Correia-da-Silva & Joana Pinho & Hélder Vasconcelos, 2014. "Sustaining collusion in markets with a general evolution of demand," FEP Working Papers 537, Universidade do Porto, Faculdade de Economia do Porto.
    19. Symeonidis, George, 2007. "The Effect of Competition on Wages and Productivity: Evidence from the UK," Economics Discussion Papers 3687, University of Essex, Department of Economics.
    20. Flores-Fillol, Ricardo & Ibañez-Zarate, Guiomar & Theilen, Bernd, 2014. "Domestic and international research joint ventures: The effect of collusion," Economics Letters, Elsevier, vol. 122(1), pages 79-83.
    21. Jaideep Shenoy, 2012. "An Examination of the Efficiency, Foreclosure, and Collusion Rationales for Vertical Takeovers," Management Science, INFORMS, vol. 58(8), pages 1482-1501, August.
    22. Constantin BELU, 2012. "Pricing Patterns And Implications For Competition Policy," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 10, pages 97-103, December.
    23. Ozbugday, F.C., 2011. "Exploring National Concerted Practices in an Open Small Economy : What Does the Change in the Competition Law in the Netherlands Reveal?," Discussion Paper 2011-037, Tilburg University, Center for Economic Research.
    24. Ganslandt, Mattias & Norbäck, Pehr-Johan, 2004. "Do Mergers Result in Collusion?," Working Paper Series 621, Research Institute of Industrial Economics.

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