The Impact of Collusion on Price Behavior: Empirical Results from Two Recent Cases

Yuliya Bolotova, John Connor () and Douglas J. Miller

No 19164, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: We used extensions of traditional ARCH and GARCH models to examine the difference in the behavior of the first two moments of the price distribution during collusion and the absence of it using prices from two recently discovered conspiracies, citric acid and lysine. According to our results, the citric acid conspiracy increased prices by 9 cents per pound relative to pre-cartel and post-cartel periods. The lysine conspiracy managed to raise prices by 25 cents per pound. In addition, the variance of prices during the lysine conspiracy was lower than the variance of prices during pre-cartel and post-cartel periods as we expected. In contrast, the variance of prices during the citric acid conspiracy was higher relative to more competitive periods.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 28
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: The impact of collusion on price behavior: Empirical results from two recent cases (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19164

DOI: 10.22004/ag.econ.19164

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