òòò½Íø Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Cartels Uncovered
òòò½Íø Journal: Microeconomics
vol. 10,
no. 4, November 2018
(pp. 190–222)
(Complimentary)
Abstract
How many cartels are there, and how long do they live? The answers to these questions are important in assessing the need for competition policy. We present a Hidden Markov Model that takes into account that often it is not known whether a cartel exists or not. We take the model to data from a period of legal cartels—Finnish manufacturing industries 1951–1990. Our estimates suggest that once born, cartels are persistent; by the end of the period, almost all industries were cartelized.Citation
Hyytinen, Ari, Frode Steen, and Otto Toivanen. 2018. "Cartels Uncovered." òòò½Íø Journal: Microeconomics 10 (4): 190–222. DOI: 10.1257/mic.20160326Additional Materials
JEL Classification
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- K21 Antitrust Law
- L12 Monopoly; Monopolization Strategies
- L13 Oligopoly and Other Imperfect Markets
- L41 Monopolization; Horizontal Anticompetitive Practices
- L60 Industry Studies: Manufacturing: General