Excessive prices as abuse of dominance? A test applied to the Danish cement industry

Lisbeth la Cour, Peter Møllgaard

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearch

Abstract

In previous research, we found that the sole Danish producer of cement holds a dominant position in the Danish market for (grey) cement. We are able to identify an inelastic long-run demand relation that would seem to permit the exercise of market power. We aim to establish whether the dominant firm abused its position by charging excessive prices. We also test whether tightening of the Danish competition act has altered the pricing behaviour on the market. We discuss our results in the light of a Danish competition case against the dominant cement producer that was abandoned by the authority due to lack of evidence.
Original languageEnglish
Title of host publicationAbuse of Dominance : Proceedings of the 1st European Conference in Competition and Regulation, July 2006
EditorsYannis Katsoulacos
Number of pages18
Publication date2007
Pages104-121
ISBN (Print)978-960-86157-8-6
Publication statusPublished - 2007
EventEuropean Conference in Competition and Regulation -
Duration: 30 Jun 2010 → …
Conference number: 1

Conference

ConferenceEuropean Conference in Competition and Regulation
Number1
Period30/06/2010 → …

Cite this

la Cour, L., & Møllgaard, P. (2007). Excessive prices as abuse of dominance? A test applied to the Danish cement industry. In Y. Katsoulacos (Ed.), Abuse of Dominance: Proceedings of the 1st European Conference in Competition and Regulation, July 2006 (pp. 104-121)