The impact of cartel dissolution on prices: Evidence from the air cargo cartel

B-Tier
Journal: International Journal of Industrial Organization
Year: 2024
Volume: 97
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I analyze pricing behavior before and after the detection of an air cargo cartel using a novel, hand-collected dataset. I find that prices did not decline after the cartel's detection. Additionally, pricing patterns are consistent with post-cartel tacit collusion. My findings suggest that airlines' cartel activity (specifically, the development of a methodology for determining the collusive price) laid a foundation for future tacit collusion. As a result, airlines profited from cartel activity, and shippers paid elevated prices, long after the cartel's dissolution.

Technical Details

RePEc Handle
repec:eee:indorg:v:97:y:2024:i:c:s016771872400064x
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-29