Competitive assessment of an oligopolistic market open to international trade with incomplete data

Marc Ivaldi and Chantal Roucolle ()

Post-Print from HAL

Abstract: This paper is aimed at detecting whether an oligopolistic industry facing an international competition can sustain collusion or whether international trade disciplines it to competition. To do so we consider a differentiated-products oligopoly model and we estimate both demand and supply sides of the industry under investigation. The empirical analysis is performed in four steps. In the first step, we build a mathematical representation of the working of the industry. The second step is devoted to the estimation of the model under the assumption that the market is competitive. The third step provides an estimation of the model when it is assumed that the main firms on the market are forming a cartel and, more specifically, are behaving like a monopoly. Finally, the fourth step consists in comparing the two estimations in their capacity to represent reality, i.e., detecting which of the conducts - competition or collusion - is the most statistically adequate to represent the working of the market. The main result is that, in the industry under consideration and regarding the period of interest, the competition model statistically performs better than the collusion model. The very innovative part of the analysis here lies in the use of a limited amount of information. Indeed we perform the estimation of the model based on data from only one firm of the oligopoly and some aggregated data, thanks to the specification and the role of the international side of the market.

Keywords: oligopolistic; market (search for similar items in EconPapers)
Date: 2013-08-30
Note: View the original document on HAL open archive server: https://enac.hal.science/hal-00907739v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in EARIE 2013, 40th Annual Conference of the European Association for Research in Industrial Economics, Aug 2013, Évora, Portugal

Downloads: (external link)
https://enac.hal.science/hal-00907739v1/document (application/pdf)

Related works:
Working Paper: Competitive assessment of an oligopolistic market open to international trade with incomplete data (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00907739

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().