Research stay at UC3M: DEPARTMENT OF ECONOMICS
Project: In his role as European Commissioner for Competition, Mario Monti referred to cartels as "cancers on the open market economy." The emphasis on shutting down cartels has fueled interest among competition authorities for more effective policies. My project is intended to produce a better understanding of cartels and thereby provide the foundation from which better policies will come.
Questions to be addressed include: When do cartels form? What market conditions are conducive to cartel formation? How long do cartels last? The initial step in this project is to develop the next generation model of cartel birth and death, building on my earlier work in the Journal of the European Economic Association (2009).
Once constructed, this cartel birth-death process will be used to generate a simulated panel data set of industries and cartels that will act as a testing ground for: 1) evaluating methods for estimating cartel-related measures; 2) engaging in the ex ante evaluation of competition policy; and 3) developing methods for performing an ex post evaluation of competition policy.
Stay Period: SEP 12 - MAR 13