Cartels uncovered

Ari Hyytinen; Frode Steen; Otto Toivanen

doi:10.1257/mic.20160326

Cartels uncovered

Ari Hyytinen, Frode Steen, Otto Toivanen

Economics, Helsinki

Research output: Contribution to journal › Article › Scientific › peer-review

18 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 language	English
Peer-reviewed scientific journal	American Economic Journal : Microeconomics
Volume	10
Issue number	4
Pages (from-to)	190-222
Number of pages	33
ISSN	1945-7669
DOIs	https://doi.org/10.1257/mic.20160326
Publication status	Published - 2018
MoE publication type	A1 Journal article - refereed

Keywords

511 Economics

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10.1257/mic.20160326

HST_2017_07_07_postprint_version_to HankenAccepted author manuscript, 3.8 MB

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Cartels uncovered

Abstract

Keywords

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