Abstract

http://ssrn.com/abstract=1985798
 
 

Citations (1)



 


 



Private Monitoring and Cartel Duration: An Instrumental Variables Approach


Jun Zhou


Zhejiang Wanli University; Tilburg Law and Economics Center (TILEC)

January 1, 2012


Abstract:     
Colluding firms often exchange private information and make transfers within the cartels based on the information. Estimating the impact of such collusive practices- known as the "lysine strategy profile (LSP)"- on cartel duration is difficult because of endogeneity and omitted variable bias. I use firms' linguistic differences as an instrumental variable for the LSP in 135 cartels discovered by the European Commission since 1980. The incidence of the LSP is not significantly related to cartel duration. After correction for selectivity in the decision to use the LSP, statistical tests are consistent with a theoretic prediction that the LSP increases cartel duration.

Number of Pages in PDF File: 38

Keywords: the lysine strategy profile, post-agreement information exchange, within-cartel transfers, monitoring, verification and promotion of compliance, cartel duration, endogenous covariates

JEL Classification: D43, K21, K42, L13


Open PDF in Browser Download This Paper

Date posted: January 17, 2012 ; Last revised: May 2, 2012

Suggested Citation

Zhou, Jun, Private Monitoring and Cartel Duration: An Instrumental Variables Approach (January 1, 2012). Available at SSRN: http://ssrn.com/abstract=1985798 or http://dx.doi.org/10.2139/ssrn.1985798

Contact Information

Jun Zhou (Contact Author)
Zhejiang Wanli University ( email )
Ninbo, Zhejiang
China
Tilburg Law and Economics Center (TILEC) ( email )
Warandelaan 2
Tilburg, 5000 LE
Netherlands
Feedback to SSRN


Paper statistics
Abstract Views: 653
Downloads: 15
Citations:  1

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 1.172 seconds