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

Ivette Jans, David I. Rosenbaum

Research output: Contribution to journalArticle

81 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 languageEnglish (US)
Pages (from-to)391-412
Number of pages22
JournalInternational Journal of Industrial Organization
Volume15
Issue number3
DOIs
StatePublished - 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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