Working Paper Series, Department of Economics, Copenhagen Business School
Lisbeth Funding la Cour and H. Peter Møllegaard
TESTS OF (ABUSE OF) DOMINATION: The Danish cement industry
Abstract: We test econometrically whether the sole Danish producer
of cement holds a dominant
position in the Danish market for (grey)
cement. In import penetration tests, we find that its
quantity decisions are independent of import price and quantity, implying
that it can
act to a considerable extent independently of its
competitors. We also test whether it can act
independently of its
customers and find that its demand is inelastic with respect to its price.
holds a dominant position in the sense of the European Court of
Justice. Having established
dominance, we go on to illustrate that
based on our data, it is difficult to conclude that it has
dominant position in the sense of the Court.
Keywords: Dominant position; econometric tests; excessive pricing; cement.; (follow links to similar papers)
JEL-Codes: K21; L41; L61; (follow links to similar papers)
32 pages, November 6, 2000
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