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Collusion in the Indian Tea Industry in the Great Depression : An Analysis of Panel Data

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  • Gupta, B.

    (Tilburg University, Center For Economic Research)

Abstract

This paper analyzes the effectiveness of the control schemes in the Indian tea industry during the Great Depression, whereby producers attempted to collude by reducing output. Analysis of data from a panel of plantations shows that collusion was effective. We suggest that the system of management of plantations by "managing agents" enhanced the degree of monopoly in the industry, thereby facilitating collusion. The social cohesiveness of expatriate business may have also contributed to the enforcement of collusion.
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Suggested Citation

  • Gupta, B., 1995. "Collusion in the Indian Tea Industry in the Great Depression : An Analysis of Panel Data," Discussion Paper 1995-74, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:7e9044af-cee6-4132-8a22-cfd193d8e258
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    Cited by:

    1. Goppelsroeder, Marie, 2009. "Entry in Collusive Markets: An Experimental Study," MPRA Paper 14707, University Library of Munich, Germany.
    2. de Roos, Nicolas, 2004. "A model of collusion timing," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 351-387, March.
    3. John M. Connor, 2003. "Private International Cartels: Effectiveness, Welfare, and Anticartel Enforcement," Working Papers 03-12, Purdue University, College of Agriculture, Department of Agricultural Economics.
    4. Margaret C. Levenstein & Valerie Y. Suslow, 2002. "What Determines Cartel Success?," UMASS Amherst Economics Working Papers 2002-01, University of Massachusetts Amherst, Department of Economics.

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