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Concrete shoes for competition: The effect of the German cement cartel on market price

  • Hüschelrath, Kai
  • Müller, Kathrin
  • Veith, Tobias

We use publicly available price data from the German cement industry to estimate the cartelinduced price increase. We apply two different comparator-based approaches - the 'before and-after' approach and the 'difference-in-differences' approach - and especially study the impact of various assumptions on the transition period from the cartel period to the non-cartel period on the overcharge estimate. We find that the cement cartel led to price overcharges in a range from 20.3 to 26.5 percent depending on model approach and model assumptions.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 12-035.

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Date of creation: 2012
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Handle: RePEc:zbw:zewdip:12035
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  1. Hans W. Friederiszick & Lars-Hendrik Röller, 2010. "Quantification of harm in damages actions for antitrust infringements: Insights from German cartel cases," ESMT Research Working Papers ESMT-10-001, ESMT European School of Management and Technology.
  2. James F. Nieberding, 2006. "Estimating overcharges in antitrust cases using a reduced-form approach: Methods and issues," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 361-380, November.
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