Estimating the price overcharge from cartelisation of the Irish automobile industry
File Type:
PDFItem Type:
Journal ArticleDate:
2009Citation:
Mariuzzo, Franco; Walsh, Patrick Paul; Van Parys, Olivier. 'Estimating the price overcharge from cartelisation of the Irish automobile industry'. - Economic & Social Review, Vol. 40, no. 2, Summer, 2009, pp. 165?182, Dublin: Economic & Social Research InstituteDownload Item:
Vol-40-2-Mariuzzo.pdf (Published (publisher's copy) - Peer Reviewed) 587.4Kb
Abstract:
Price coordination can be very harmful for consumers. Yet, even if a cartel is proved to
exist, and successful in enforcement, how do we estimate damages or price overcharges to
consumers? We build a structural model of the Irish automobile market that avails of a crosssection of new cars and jointly estimate demand and cost primitives. We use these estimates to quantify the role that price coordination could play in terms of pricing, profits and burden of taxation in three alternative regimes: All models of cars compete in price (Regime I); Only cars of different manufacturers compete in price (Regime II); Only cars of different importers compete in price (Regime III).
Publisher:
Economic & Social StudiesType of material:
Journal ArticleCollections:
Availability:
Full text availableKeywords:
Car trade, Cartels, Ireland, Car pricesISSN:
0012-9984Licences: