Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208432 
Year of Publication: 
2000
Series/Report no.: 
Working paper No. 10-2000
Publisher: 
Copenhagen Business School (CBS), Department of Economics, Frederiksberg
Abstract: 
We test econometrically whether the sole Danish producer of cement holds a dominant position in the Danish market for (grey) cement. In import penetration tests, we find that its pricing and quantity decisions are independent of import price and quantity, implying that it can act to a considerable extent independently of its competitors. We also test whether it can act independently of its customers and find that its demand is inelastic with respect to its price. It thus holds a dominant position in the sense of the European Court of Justice. Having established dominance, we go on to illustrate that based on our data, it is difficult to conclude that it has abused its dominant position in the sense of the Court.
Subjects: 
Dominant position
econometric tests
excessive pricing
cement
JEL: 
K21
L41
L61
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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