Cartels Uncovered
How many cartels are there? The answer is important in assessing the efficiency of competition policy. We present a Hidden Markov Model that answers the question, taking into account that often we do not know whether a cartel exists in an industry or not. Our model identifies key policy parameters from data generated under different competition policy regimes and may be used with time-series or panel data. We take the model to data from a period of legal cartels - Finnish manufacturing industries 1951 - 1990. Our estimates suggest that by the end of the period, almost all industries were cartelized.
Year of publication: |
2010-03
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Authors: | Hyytinen, Ari ; Steen, Frode ; Toivanen, Otto |
Institutions: | C.E.P.R. Discussion Papers |
Subject: | antitrust | cartel | competition | detection | Hidden Markov models | illegal | legal | leniency | policy | registry |
Saved in:
Online Resource
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Notes: | Number 7761 |
Classification: | L0 - Industrial Organization. General ; L4 - Antitrust Policy ; L40 - Antitrust Policy. General ; L41 - Monopolization; Horizontal Anticompetitive Practices ; L60 - Industry Studies: Manufacturing. General |
Source: |
Persistent link: https://www.econbiz.de/10008468608