### Abstract

Original language | English |
---|---|

Place of Publication | Tilburg |

Publisher | TILEC |

Volume | 2008-030 |

Publication status | Published - 2008 |

### Publication series

Name | TILEC Discussion Paper |
---|---|

Volume | 2008-030 |

### Fingerprint

### Keywords

- cartel
- abuse of a dominant position
- pass on defence
- apportionment of harm
- supply curve
- tax incidence

### Cite this

*The Distribution of Harm in Price-Fixing Cases*. (TILEC Discussion Paper; Vol. 2008-030). Tilburg: TILEC.

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**The Distribution of Harm in Price-Fixing Cases.** / Boone, J.; Müller, W.

Research output: Working paper › Discussion paper › Other research output

TY - UNPB

T1 - The Distribution of Harm in Price-Fixing Cases

AU - Boone, J.

AU - Müller, W.

PY - 2008

Y1 - 2008

N2 - Abstract: We consider a vertically related industry and analyze how the total harm due to a price increase upstream is distributed over downstream firms and final consumers. For this purpose, we develop a general model without making specific assumptions regarding demand, costs, or the mode of competition. We consider both the case of homogeneous and differentiated goods markets. Furthermore, we discuss data requirements and suggest explicit formulas and regression specifications that can be used to estimate the relevant terms in the harm distribution in practice, even if elevated upstream prices are rather constant over time. The latter can be achieved by considering perturbations of the demand curve. This in turn can be used to construct a supply curve for the case of imperfect competition that includes perfect competition and monopoly as special cases. Finally, we illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm.

AB - Abstract: We consider a vertically related industry and analyze how the total harm due to a price increase upstream is distributed over downstream firms and final consumers. For this purpose, we develop a general model without making specific assumptions regarding demand, costs, or the mode of competition. We consider both the case of homogeneous and differentiated goods markets. Furthermore, we discuss data requirements and suggest explicit formulas and regression specifications that can be used to estimate the relevant terms in the harm distribution in practice, even if elevated upstream prices are rather constant over time. The latter can be achieved by considering perturbations of the demand curve. This in turn can be used to construct a supply curve for the case of imperfect competition that includes perfect competition and monopoly as special cases. Finally, we illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm.

KW - cartel

KW - abuse of a dominant position

KW - pass on defence

KW - apportionment of harm

KW - supply curve

KW - tax incidence

M3 - Discussion paper

VL - 2008-030

T3 - TILEC Discussion Paper

BT - The Distribution of Harm in Price-Fixing Cases

PB - TILEC

CY - Tilburg

ER -