How Can a Cartel Be Detected?

Korbinian von Blanckenburg and Alexander Geist

International Advances in Economic Research, 2009, vol. 15, issue 4, 436 pages

Abstract: There is a long history of analyzing the workability of markets regarding concentration ratios as indicators of workability. In this paper, we discuss a comparatively new concept, the Coordination Failure Diagnostics (CFD) Concept, introduced by Grossekettler ( 1982 , 1999 , 2005 , 2008 ). The CFD-concept analyzes real market processes by means of time series analysis and investigates whether they operate efficiently or not. Furthermore, the concept can be used as a tool for detecting cartels. Therefore, we develop a System of Cartel Markers which can be used to analyze real markets. We analyze the German cement industry as an example of a cartel and find significant differences to the competitive benchmark. Copyright International Atlantic Economic Society 2009

Keywords: Competition policy; Workability of markets; Industry studies; L10; L60 (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1007/s11294-009-9235-6

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