TESTING COLLUSIVE PRICES IN A MULTIMARKET CONTEXT: THE EUROPEAN CASE OF VITAMIN C

Jacint Balaguer, Ezequiel Uriel () and Vicente Orts
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Vicente Orts: Universitat Jaume I

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: In this paper, we suggest a method to test price-fixing agreements. Prices fixed to multiple shipments are decomposed into a set of destination market effects and time effects in order to allow us to perform an analysis of residuals. We examine the pricing behavior of vitamin C in the European destination markets of German exports. We explore two different periods: January 1991 to August 1995 and September 1995 to September 2001. Empirical results on the first period, which are consistent with our knowledge obtained from firms¿ confessions about illegal agreements, contrast notably with those obtained on the more recent period. En este trabajo proponemos un método para contrastar la presencia de prácticas no competitivas en precios. Cada uno de los precios fijados para diferentes mercados es descompuesto en un efecto fijo por destino y un efecto temporal con objeto de analizar los residuos. Los precios de la vitamina C en los mercados de destino de las exportaciones alemanas son examinados en dos periodos: de enero de 1991 a agosto de 1995 y de septiembre de 1995 a septiembre de 2001. Los resultados para el primer periodo, los cuales son consistentes con nuestro conocimiento obtenido de las confesiones de las empresas participantes en los acuerdos ilegales, contrastan notablemente con los obtenidos para un período más reciente.

Keywords: Colusión; Mercados internacionales; Vitamina C Collusion; International markets; Vitamin C (search for similar items in EconPapers)
JEL-codes: D43 L12 L41 L65 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2005-03
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:2005-06

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