Competition, collusion and spatial sales patterns: Theory and evidence
Ulrich Laitenberger and
Johannes Muthers ()
Authors registered in the RePEc Author Service: Kai Hueschelrath
No 17-035, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
We study competition in markets with significant transport costs and capacity constraints. We compare the cases of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers that are closer to plants of competitors. By means of a rich micro-level data set of the cement industry in Germany, we provide empirical evidence in support of this result. Controlling for other potentially confounding factors, such as the number of production plants and demand, we find that the transport distances between suppliers and customers were on average significantly lower in cartel years than in non-cartel years.
Keywords: capacity constraints; cartel; cement; spatial competition; transport costs (search for similar items in EconPapers)
JEL-codes: K21 L11 L41 L61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ind, nep-law and nep-tre
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Working Paper: Competition, collusion and spatial sales patterns: Theory and evidence (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:17035
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