MULTIMARKET CONTACT AND PRICING - EVIDENCE FROM THE US CEMENT INDUSTRY

Authors
JANS I ROSENBAUM DI
Citation
I. Jans et Di. Rosenbaum, MULTIMARKET CONTACT AND PRICING - EVIDENCE FROM THE US CEMENT INDUSTRY, International journal of industrial organization, 15(3), 1997, pp. 391-412
Citations number
37
Categorie Soggetti
Economics
Journal title
International journal of industrial organization → ACNP
ISSN journal
01677187
Volume
15
Issue
3
Year of publication
1997
Pages
391 - 412
Database
ISI
SICI code
0167-7187(1997)15:3<391:MCAP-E>2.0.ZU;2-V
Abstract
We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket co ntact among firms in that market.