Template-type: ReDif-Paper 1.0
Author-Name: Bovin, Andreas
Author-Name: Bos, Iwan
Author-workplace-name: RS: GSBE other - not theme-related research, Organisation,Strategy & Entrepreneurship
Title: Market Shares as Collusive Marker: Evidence from the European Truck Industry
Abstract: Collusion theory robustly predicts non-cartel rivals to raise their price and increase their output. As the typical cartel cuts back production, its competitors are expected to gain market share during the collusive period and to lose market share in<br/>the period following the cartel's demise. We provide empirical support for this prediction by showing that it applied to the European truck cartel. We also illustrate how our analysis can be used in the prosecution stage. One truck manufacturer<br/>denied cartel participation, whereas the proposed market share test supports the European Commission's finding that this firm was, in fact, a member.
Classification-JEL: l10,l40
Series: GSBE Research Memoranda
Creation-Date: 20230711
Number: 011
File-URL: https://cris.maastrichtuniversity.nl/ws/files/142866142/RM23011.pdf
File-Format: application/pdf
File-Size: 798311
Handle: Repec:unm:umagsb:2023011
DOI: 10.26481/umagsb.2023011