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Collusion analysis of the Alabama liquid asphalt market

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The Alabama liquid asphalt market in the USA is examined over the period 1961-1978 for evidence of activity consistent with collusion. Some 14 conditional collusion-facilitating factors that could influence a market's tendency towards collusion, not all equally important or necessarily in agreement with every other factor, were considered. While some of these factors are controversial and can help or harm a collusion, the net balance of factors and all of the important factors and evidence pointed towards being consistent with a conspiracy. While not examined as extensively, it was also found that the circumstantial evidence in the market was also consistent with collusion. This article suggests a procedural methodology for initiation and resolution of suspected collusion for determining appropriate damages. While the precise law and damages allowed will be country-specific, the general methodology should have wide application in many countries whose laws attempt to foster and preserve competition and punish and deter monopoly acquired and maintained by acting badly, such as by colluding or exclusionary conduct.
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Document Type: Research Article

Affiliations: 1: The University of Georgia The Terry College of Business Department of Economics Brooks Hall Athens GA 30602-6254 USA 2: Lundy-Fetterman School of Business Lundy-Fetterman Building Campbell University Buies Creek NC 27506 USA

Publication date: 2004-04-01

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