Cartels uncovered

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A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2018-11-01

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en

Pages

33

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American Economic Journal: Microeconomics, Volume 10, issue 4, pp. 190-222

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.

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Hyytinen, A, Steen, F & Toivanen, O 2018, ' Cartels uncovered ', American Economic Journal: Microeconomics, vol. 10, no. 4, pp. 190-222 . https://doi.org/10.1257/mic.20160326