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|dc.description.abstract||Cartel existence might evoke three types of inefficiencies according to economic theory: allocative, dynamic and x-inefficiency. We estimate the profitability of international cartels thereby testing for the allocative inefficiency hypothesis. Second, we assess dynamic inefficiency measured by considering investments into R&D. Third, we asses x-inefficiency by considering (labor) productivity. Our research analyzes firm-specific financial data for a sample of 143 firms involved in 50 European cartel infringements that took place between 1983 and 2004 involving internationally operating firms. Our findings support increased profitability showing a significant rise in return on assets during cartel years. Ringleaders are more profitable on average than other cartel members. R&D expenditures over sales and assets measuring dynamic efficiency decrease during the cartel period. Productive efficiency – measured as sales over employees – declines during the cartel phase indicating a “quiet life” effect.||de_CH|
|dc.rights||Licence according to publishing contract||de_CH|
|dc.title||Do cartels undermine economic efficiency?||de_CH|
|zhaw.departement||School of Management and Law||de_CH|
|zhaw.organisationalunit||Fachstelle für Wirtschaftspolitik (FWP)||de_CH|
|zhaw.conference.details||2nd Workshop: «Industrial Organization», Otranto, Italy, 23-24 June 2011||de_CH|
|Appears in Collections:||Publikationen School of Management and Law|
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