The Effect of Competition on Trade Patterns: Evidence from the Collapse of International Cartels
dc.contributor.author | Levenstein, Margaret C. | |
dc.contributor | Sivadasan, Jagadeesh | |
dc.contributor | Suslow, Valerie Y. | |
dc.date.accessioned | 2010-08-09T17:07:35Z | |
dc.date.available | 2010-08-09T17:07:35Z | |
dc.date.issued | 2015-01 | |
dc.identifier | 1147 | en_US |
dc.identifier.citation | International Journal of Industrial Organization, Forthcoming | |
dc.identifier.uri | https://hdl.handle.net/2027.42/77584 | |
dc.description.abstract | How do changes in competitive intensity affect trade patterns? Some cartels may find it advantageous to eliminate cross-hauling and divide markets geographically. We exploit a quasi-natural experiment associated with increased antitrust enforcement to determine if market division strategies were used in seven recently-prosecuted international cartels. Since antitrust activity is unlikely to affect spatial patterns of demand and supply (other than through its effect on the competitive environment), enforcement-induced changes are ideally suited to study the effect of competition on trade patterns. Analyzing the cartels individually and as a group, we find no significant change in spatial patterns of trade following cartel breakup; in particular, there is no significant change in the effect of distance on trade. These results suggest that cross-hauling is not uncommon under collusion and hence that the existence of cross-hauling by itself does not provide evidence of effective competition. | en_US |
dc.format.extent | 485026 bytes | |
dc.format.mimetype | application/pdf | |
dc.subject | Multimarket collusion | en_US |
dc.subject | gravity | en_US |
dc.subject | oligopoly | en_US |
dc.subject | anti-trust policy | en_US |
dc.subject | cross-hauling | |
dc.subject | cartels | |
dc.subject | market allocation | |
dc.subject.classification | Business Economics | en_US |
dc.title | The Effect of Competition on Trade Patterns: Evidence from the Collapse of International Cartels | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/77584/1/1147_Levenstein.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/77584/4/1147_Jsivadasan_feb2011.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/77584/6/1147_Suslow_Jan15.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/77584/7/1147_Suslow_Jan15.pdf | |
dc.description.filedescription | Description of 1147_Suslow_Jan15.pdf : January 2015 revision | |
dc.description.filedescription | Description of 1147_Levenstein.pdf : original | |
dc.description.filedescription | Description of 1147_Jsivadasan_feb2011.pdf : Feb 2011 revision | |
dc.description.filedescription | Description of 1147_Suslow_Jan15.pdf : forthcoming added, Jan 15, use this over the other Jan 15 | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
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