DP2301 In Which Industries Is Collusion More Likely?
|Publication Date:||November 1999|
|Keyword(s):||Cartels, Collusion, UK Manufacturing|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2301|
This paper provides an analysis of factors facilitating or hindering collusion using data on the occurrence of price-fixing across UK manufacturing industries in the 1950s. The econometric results suggest that collusion is more likely the higher the degree of capital intensity and less likely in advertising-intensive than in low-advertising industries, while the relationship between market growth and the likelihood of collusion is non-monotonic. Less clear results are obtained with respect to R&D intensity and concentration.