Empirical Methods in the Analysis of Collusion

Johannes Paha

No 201033, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Regression methods are commonly used in competition lawsuits for, e.g., determining overcharges in pricefixing cases. Technical evaluations of these methods' pros and cons are not necessarily intuitive. Appraisals that are based on case studies are descriptive but need not be universally valid. This paper opens up the black box called econometrics for competition cases. This is done by complementing theoretical arguments with estimation results. These results are obtained for data that is generated by a simulation-model of a collusive industry. Using such data leaves little room for debate about the quality of these methods because estimates of, e.g., overcharges can be compared to their true underlying values. This analysis provides arguments for demonstrating that thoroughly conducted econometric analyses yield better results than simple techniques such as before-and-after comparisons.

Keywords: Collusion; Empirical Methods; Industry Simulation (search for similar items in EconPapers)
JEL-codes: C51 D43 K21 L41 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2010
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Citations: View citations in EconPapers (1)

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Journal Article: Empirical methods in the analysis of collusion (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201033

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