Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market

Detalhes bibliográficos
Autor(a) principal: Ferreira, Pedro Cavalcanti G.
Data de Publicação: 2020
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/20664
Resumo: Papers assessing the antitrust effect on cartel cases usually take the form of a quantifying approach, measuring the impact on prices with methods like before-and-after dummy regressions, difference-in-difference, or synthetic controls designs. However, these approaches have some downsides( notably, the requirement of establishing an exogenous date or breakthrough event, based on assumptions that may not be accurate). To overcome this weakness, we applied Structural Break Analysis (Bai and Perron Test) and Markov Switching Regressions to four cases in the Brazilian fuel market (Brasilia, Belo Horizonte, São Luís and Londrina) to analyze the effectiveness of competition policies. As a comparative test between MSR and Bai Perron procedures, our paper shows that the former was more sensible to transitions between regimes, without missing breaks, and exhibited precise results. From the point of view of the antitrust policy evaluation, our findings indicate a low capacity of the antitrust authorities to extinguish price-fixing practices in targeted markets.
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spelling Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel marketcollusionantitrust policyBrazilfuel marketstructural breaksmarkov switchpolicy evaluationPapers assessing the antitrust effect on cartel cases usually take the form of a quantifying approach, measuring the impact on prices with methods like before-and-after dummy regressions, difference-in-difference, or synthetic controls designs. However, these approaches have some downsides( notably, the requirement of establishing an exogenous date or breakthrough event, based on assumptions that may not be accurate). To overcome this weakness, we applied Structural Break Analysis (Bai and Perron Test) and Markov Switching Regressions to four cases in the Brazilian fuel market (Brasilia, Belo Horizonte, São Luís and Londrina) to analyze the effectiveness of competition policies. As a comparative test between MSR and Bai Perron procedures, our paper shows that the former was more sensible to transitions between regimes, without missing breaks, and exhibited precise results. From the point of view of the antitrust policy evaluation, our findings indicate a low capacity of the antitrust authorities to extinguish price-fixing practices in targeted markets.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaFerreira, Pedro Cavalcanti G.2020-12-21T19:17:55Z2020-122020-12-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/20664engFerreira, Pedro Cavalcanti G. (2020). "Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market". Instituto Superior de Economia e Gestão – REM Working paper nº 0152 – 20202184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:50:06Zoai:www.repository.utl.pt:10400.5/20664Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:05:21.219912Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
title Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
spellingShingle Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
Ferreira, Pedro Cavalcanti G.
collusion
antitrust policy
Brazil
fuel market
structural breaks
markov switch
policy evaluation
title_short Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
title_full Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
title_fullStr Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
title_full_unstemmed Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
title_sort Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market
author Ferreira, Pedro Cavalcanti G.
author_facet Ferreira, Pedro Cavalcanti G.
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Ferreira, Pedro Cavalcanti G.
dc.subject.por.fl_str_mv collusion
antitrust policy
Brazil
fuel market
structural breaks
markov switch
policy evaluation
topic collusion
antitrust policy
Brazil
fuel market
structural breaks
markov switch
policy evaluation
description Papers assessing the antitrust effect on cartel cases usually take the form of a quantifying approach, measuring the impact on prices with methods like before-and-after dummy regressions, difference-in-difference, or synthetic controls designs. However, these approaches have some downsides( notably, the requirement of establishing an exogenous date or breakthrough event, based on assumptions that may not be accurate). To overcome this weakness, we applied Structural Break Analysis (Bai and Perron Test) and Markov Switching Regressions to four cases in the Brazilian fuel market (Brasilia, Belo Horizonte, São Luís and Londrina) to analyze the effectiveness of competition policies. As a comparative test between MSR and Bai Perron procedures, our paper shows that the former was more sensible to transitions between regimes, without missing breaks, and exhibited precise results. From the point of view of the antitrust policy evaluation, our findings indicate a low capacity of the antitrust authorities to extinguish price-fixing practices in targeted markets.
publishDate 2020
dc.date.none.fl_str_mv 2020-12-21T19:17:55Z
2020-12
2020-12-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/20664
url http://hdl.handle.net/10400.5/20664
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Ferreira, Pedro Cavalcanti G. (2020). "Post-cartel behavior : assessing the effects of antitrust policy on brazilian fuel market". Instituto Superior de Economia e Gestão – REM Working paper nº 0152 – 2020
2184-108X
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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