Multimarket contact and pricing: Evidence from the U.S. cement industry

Ivette Jans; David I. Rosenbaum

doi:10.1016/0167-7187(95)00493-9

Multimarket contact and pricing: Evidence from the U.S. cement industry

Ivette Jans, David I. Rosenbaum

Research output: Contribution to journal › Article › peer-review

108 Scopus citations

Abstract

We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket contact among firms in that market.

Original language	English (US)
Pages (from-to)	391-412
Number of pages	22
Journal	International Journal of Industrial Organization
Volume	15
Issue number	3
DOIs	https://doi.org/10.1016/0167-7187(95)00493-9
State	Published - May 1997

Keywords

Cement industry
Collusion
Multimarket contact

ASJC Scopus subject areas

Industrial relations
Aerospace Engineering
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management
Industrial and Manufacturing Engineering

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10.1016/0167-7187(95)00493-9

Cite this

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abstract = "We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket contact among firms in that market.",

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AB - We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket contact among firms in that market.

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KW - Collusion

KW - Multimarket contact

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Multimarket contact and pricing: Evidence from the U.S. cement industry

Abstract

Keywords

ASJC Scopus subject areas

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