Is There Anti-competitive Behaviour in the Central Canadian Cement Industry?
Author InfoAndrew N. Kleit Halldor P. Palsson Abstract Allegations of anticompetitive behavior in the central Canadian cement industry have focused around the effects of cement producers’ buying their downstream distributors. If indeed vertical integration is causing cement prices to rise, the relevant economic theories imply that the arbitrage cost of shipping cement to central Canada is greater than the cost of shipping cement from this region. The authors investigate this theory by econometrically estimating the relevant arbitrage costs. Their analysis supports the hypothesis that vertical integration has increased barriers to entry for cement in Toronto but it fails to support a similar hypothesis for Montreal. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these f
