« Antitrust Law Scholar Tom Sullivan Named President of the University of Vermont | Main | OFT Head John Fingleton to Step Down »
February 23, 2012
Endogenous Lysine Strategy Profile and Cartel Duration: An Instrumental Variables Approach
Posted by D. Daniel Sokol
Jun Zhou (University of Bonn, University of Tilburg) explores Endogenous Lysine Strategy Profile and Cartel Duration: An Instrumental Variables Approach.
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.
February 23, 2012 | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341bfae553ef016760f2658b970b
Listed below are links to weblogs that reference Endogenous Lysine Strategy Profile and Cartel Duration: An Instrumental Variables Approach:
