9 research outputs found

    Collusion analysis of the Alabama liquid asphalt market

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    The Alabama liquid asphalt market in the USA is examined over the period 1961-1978 for evidence of activity consistent with collusion. Some 14 conditional collusion-facilitating factors that could influence a market's tendency towards collusion, not all equally important or necessarily in agreement with every other factor, were considered. While some of these factors are controversial and can help or harm a collusion, the net balance of factors and all of the important factors and evidence pointed towards being consistent with a conspiracy. While not examined as extensively, it was also found that the circumstantial evidence in the market was also consistent with collusion. This article suggests a procedural methodology for initiation and resolution of suspected collusion for determining appropriate damages. While the precise law and damages allowed will be country-specific, the general methodology should have wide application in many countries whose laws attempt to foster and preserve competition and punish and deter monopoly acquired and maintained by acting badly, such as by colluding or exclusionary conduct.

    Industrial concentration and price-cost margin of the indonesian food and beverages sector

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    This article investigates trends in industrial concentration and its relationship with the price-cost margin in 54 subsectors of the Indonesian food and beverages sector in the period 1995 to 2006. This study uses firm-level survey data provided by the Indonesian Bureau of Central Statistics (BPS), classified at the five-digit International Standard Industrial Classification (ISIC) Level. The results show a significant increase in industrial concentration in 1995 to 1999, which coincided with the period of the economic crisis in Indonesia. After 1999, the industrial concentration exhibits a slightly decreasing long-term trend. Furthermore, the industrial concentration for all subsectors tends to converge to the same value in the long run. Additionally, results show that higher industrial concentration yields a higher price-cost margin. Finally, the introduction of the competition law in 1999 has slightly lowered industrial concentration and the price-cost margi
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