Price wars and the stability of collusion: a study of the pre-World War I bromine industry

Article Abstract:

The US bromine industry's collusion to raise prices covering the period 1885 to 1914 was analyzed to ascertain if the price wars that erupted during those years stabilized collusion or disintegrated it. Several economists have argued that price wars may be a necessity for the stability of a cartel and that they take place as a response to exogenous shocks. The results of the study showed that the price wars that ensued in the pre-World War I bromine industry were consistent with successful collusion and do not point to a breakdown in collusion.

All Other Basic Inorganic Chemical Manufacturing, Industrial inorganic chemicals, not elsewhere classified, Bromine, Prices and rates, Chemical industry, Cartels

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Partial ownership arrangements and collusion in the automobile industry

Article Abstract:

The degree of collusion that takes place in the Japanese automobile industry was estimated with partial ownership arrangements (POAs) taken into consideration. A conjectural variation model was developed that took account of foreign trade and POAs. It was then applied to both US and Japanese automobile industries. The results showed that collusion took place in the Japanese automobile industry but with a twist. When it comes to foreign markets, the Japanese automobile manufacturers exhibited non-cooperative export market behavior.

Motor vehicles and car bodies, Automobiles, Automobile Manufacturing, Automobile industry, Keiretsu system

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