Identifying the degree of collusion under proportional reduction / by Oleksandr Shcherbakov and Naoki Wakamori.: FB3-5/2017-51E-PDF
"Proportional reduction is a common cartel practice in which cartel members reduce their output proportionately. We develop a method to quantify this reduction relative to a benchmark market equilibrium scenario and relate the reduction to the traditional conduct parameter. Our measure is continuous, allowing us to have an intuitive interpretation as the “degree of collusion” and nesting the earlier models in the existing literature. Furthermore, our methodology addresses Corts’ (1999) critique by estimating time-varying degree of collusion from a short panel of firm-level observations, exploiting firms’ ex post heterogeneity. We illustrate the method using the Joint Executive Committee railroad cartel data."--Abstract, p. ii.
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | Identifying the degree of collusion under proportional reduction / by Oleksandr Shcherbakov and Naoki Wakamori. |
| Series title | Bank of Canada staff working paper, 1701-9397 ; 2017-51 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "November 2017." Includes bibliographical references. Text in English, abstract in English and French. |
| Publishing information | Ottawa : Bank of Canada, 2017. |
| Author / Contributor | Shcherbakov, Oleksandr. Wakamori, Naoki. |
| Description | ii, 48 p. : graphs |
| Catalogue number |
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| Subject terms | Industry analysis Competition Markets |