Cartels uncovered

Ari Hyytinen, Frode Steen, Otto Toivanen

Research output: Contribution to journalArticleScientificpeer-review

17 Citations (Scopus)


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
Issue number4
Pages (from-to)190-222
Number of pages33
Publication statusPublished - 2018
MoE publication typeA1 Journal article - refereed


  • 511 Economics


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