Events

Prof. Yasutora Watanabe
Professor of Economics and Public Policy
University of Tokyo

We study the impact of cartels on productivity using a unique plant-level dataset from the Japanese ready-mix concrete industry, where cartels can be legally permitted. Our annual panel covers 1993–2004 with information on inputs, outputs, cartel membership, and the timing of cartel formation and collapse. After estimating plant-level productivity, we implement a difference-in-differences analysis around these events. Results show that cartel collapse increases both plant-level and market-level productivity, while cartel formation has no effects. A decomposition indicates that improvements are driven by heightened competition following cartel collapse rather than by reallocation across plants.