Research

Multimarket Contact and Pricing: Evidence from the U.S. Cement Industry

We empirically examine the effect of multimarket contact on pricing in the U.S. cement industry. A model of price and quantity formation is estimated for a panel of 25 regional cement markets over 16 years. The results indicate that the divergence of price from marginal cost in a particular market is directly related to the extent of multimarket contact among firms in that market.

Publication Information
Article Title: Multimarket Contact and Pricing: Evidence from the U.S. Cement Industry
Journal: International Journal of Industrial Organization (1997)
v. 15 iss. 3 pp. 391-412
Author(s): Rosenbaum, David I;  Jans, Ivette
Researcher Information
    
Rosenbaum, David I
Rosenbaum, David I
Associate Director of the Bureau of Business Research,
Expertise:
  • Forensic Economics
  • Applied Microeconomics
  • Cost-Benefit Analysis
Economics
CoB 525 J
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2318
Fax: (402) 472-9700
drosenbaum1@unl.edu