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The Welfare Implications of the European Trucks Cartel

Author

Listed:
  • Christian Beyer

    (Technische Hochschule Ostwestfalen-Lippe)

  • Elke Kottmann

    (Technische Hochschule Ostwestfalen-Lippe)

  • Korbinian von Blanckenburg

    (Technische Hochschule Ostwestfalen-Lippe)

Abstract

This paper presents a pragmatic approach to calculating the total economic loss induced by a cartel, focusing on the European trucks cartel (1997–2011). This comprehensible and transparent approach builds on the theory of monopoly pricing and uses the publicly available data of the infringing companies. Overall, a net welfare loss of up to 15.5 billion euro and an overcharge to the amount of up to 7.6% are estimated. This loss to society cannot be offset by fines or private damage claims and should raise awareness for antitrust policy. The findings presented are relevant for both practitioners and policymakers.

Suggested Citation

  • Christian Beyer & Elke Kottmann & Korbinian von Blanckenburg, 2020. "The Welfare Implications of the European Trucks Cartel," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(2), pages 120-126, March.
    • Handle: RePEc:spr:intere:v:55:y:2020:i:2:d:10.1007_s10272-020-0881-5
    DOI: 10.1007/s10272-020-0881-5
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    References listed on IDEAS

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    Cited by:

    1. Bovin, Andreas & Bos, Iwan, 2023. "Market Shares as Collusive Marker: Evidence from the European Truck Industry," Research Memorandum 011, Maastricht University, Graduate School of Business and Economics (GSBE).

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