Genakos, Christos, Koutroumpis, Pantelis and Pagliero, Mario (2015) The impact of maximum markup regulation on prices. CEP Discussion Papers (CEPDP1310). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
Markup regulation is a common yet understudied type of regulation. We analyze the repeal of maximum wholesale and retail markup regulation in an oligopolistic and vertically non-integrated market. By comparing the prices of products affected by regulation before and after the policy change and using unregulated products as a control group, we find that abolishing regulation led to a significant decrease in both retail and wholesale prices. The results provide indirect but consistent evidence that markup ceilings provided a focal point for collusion among wholesalers.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://cep.lse.ac.uk/_new/publications/series.asp?... |
| Additional Information: | © 2015 The Authors |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| JEL classification: | L - Industrial Organization > L0 - General L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance L - Industrial Organization > L4 - Antitrust Issues and Policies L - Industrial Organization > L5 - Regulation and Industrial Policy |
| Date Deposited: | 17 Dec 2014 10:10 |
| Last Modified: | 11 Dec 2024 19:17 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/60533 |
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