Cartels uncovered

Ari Hyytinen, Frode Steen, Otto Toivanen

Research output: Contribution to journalArticleScientificpeer-review

4 Citations (Scopus)

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.
Original languageEnglish
Peer-reviewed scientific journalAmerican Economic Journal : Microeconomics
Volume10
Issue number4
Pages (from-to)190-222
Number of pages33
ISSN1945-7669
DOIs
Publication statusPublished - 2018
MoE publication typeA1 Journal article - refereed

Keywords

  • 511 Economics

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