Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 10-2006: Assessment of damages in the district heating pipe cartel

Peter Møllgaard
Additional contact information
Peter Møllgaard: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: The pre-insulated pipe cartel was established 1990 in Denmark, was extended to Italy and Germany during 1991 and re-organised in 1994 to cover the entire common market. Cartel members engaged in market sharing, price setting, bid rigging, coordinated predation and delaying of innovation. The European Commission fined the cartel in 1998. In 2005 four Danish municipalities successfully sued three cartel members and received large damage payments. The paper reviews the EU case, explains the economics of cartels, describes different approaches to determining damages and shows how this was done in practice. Keywords: cartel damages, pre-insulated pipes JEL: L13, L41, L61/L95

Keywords: na

JEL-codes: L13; L41; L61

16 pages, January 1, 2006

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