Excessive prices as abuse of dominance? a test applied to the Danish cement industry

Lisbeth la Cour, Peter Møllgaard

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

Abstract

In previous research, we found that the sole Danish producer of cement holds a dominant position in the Danish market for (grey) cement. We are able to identify an inelastic long-run demand relation that would seem to permit the exercise of market power. We aim to establish whether the dominant firm abused its position by charging excessive prices. We also test whether tightening of the Danish competition act has altered the pricing behaviour on the market. We discuss our results in the light of a Danish competition case against the dominant cement producer that was abandoned by the authority due to lack of evidence.
Original languageEnglish
Title of host publicationAbuse of dominance
Subtitle of host publicationproceedings of the 1st European conference in competition and regulation (July 2006)
EditorsYannis Katsoulacos
Place of PublicationAthens
PublisherAthens University of Economics and Business
Pages104-121
Number of pages18
ISBN (Print)978-960-86157-8-6
Publication statusPublished - 2007
Externally publishedYes

Keywords

  • Cement Cementindustri Pristeori Dominerende stilling udenforområde

Cite this

la Cour, L., & Møllgaard, P. (2007). Excessive prices as abuse of dominance? a test applied to the Danish cement industry. In Y. Katsoulacos (Ed.), Abuse of dominance: proceedings of the 1st European conference in competition and regulation (July 2006) (pp. 104-121). Athens University of Economics and Business.