Government-assisted oligopoly coordination? a concrete case

Svend Albæk, Per Baltzer Overgaard, Peter Møllgaard

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

In 1993 the danish antitrust authority decided to gather and publish firm-specific transactions prices for two grades of ready-mixed concrete in three regions of denmark. Following initial publication, average prices of reported grades increased by 15–20 percent within one year. We investigate whether this was due to a business upturn and/or capacity constraints, but argue that these seem to have little explanatory power. We conclude that a better explanation is that publication of prices allowed firms to reduce the intensity of oligopoly price competition and, hence, led to increased prices contrary to the aim of the authority.
Original languageEnglish
Pages (from-to)429-443
JournalJournal of Industrial Economics
Volume45
Issue number4
DOIs
Publication statusPublished - Dec 1997
Externally publishedYes

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