The distribution of harm in price-fixing cases

Research output: Contribution to journalArticleScientificpeer-review

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, and illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm. 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.
Original languageEnglish
Pages (from-to)265-276
JournalInternational Journal of Industrial Organization
Volume30
Issue number2
DOIs
Publication statusPublished - 2012

Fingerprint

Taxation
Specifications
Costs
Industry
Price fixing
Intuition
Tax incidence

Cite this

@article{6422030943ae4730bb98d368b6265300,
title = "The distribution of harm in price-fixing cases",
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, and illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm. 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.",
author = "J. Boone and W. M{\"u}ller",
note = "Appeared earlier as CentER Discussion Paper 2008-068",
year = "2012",
doi = "10.1016/j.ijindorg.2011.11.002",
language = "English",
volume = "30",
pages = "265--276",
journal = "International Journal of Industrial Organization",
issn = "0167-7187",
publisher = "Elsevier Inc.",
number = "2",

}

The distribution of harm in price-fixing cases. / Boone, J.; Müller, W.

In: International Journal of Industrial Organization, Vol. 30, No. 2, 2012, p. 265-276.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - The distribution of harm in price-fixing cases

AU - Boone, J.

AU - Müller, W.

N1 - Appeared earlier as CentER Discussion Paper 2008-068

PY - 2012

Y1 - 2012

N2 - 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, and illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm. 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.

AB - 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, and illustrate how basic intuition from the tax incidence literature carries over to the distribution of harm. 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.

U2 - 10.1016/j.ijindorg.2011.11.002

DO - 10.1016/j.ijindorg.2011.11.002

M3 - Article

VL - 30

SP - 265

EP - 276

JO - International Journal of Industrial Organization

JF - International Journal of Industrial Organization

SN - 0167-7187

IS - 2

ER -