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 The Problem of Industry Cartelization

​This session is organized by the Department of Business Economics. The objective of the panel session is to disseminate the research results in the area of industry cartelization. We will present the factors identified as contributing to an increase in the probability of cartel creation in a given industry, and those which are making the cartel creation more difficult. Next, we will discuss the relationship between industry cartelization and firms’ cooperation at the research and development stage. The analyzed models showed that the tightening of cooperation at the R&D stage creates significant incentives for the firms to form a cartel in the final product market, and to reduce the total welfare. Moreover, the interaction between firms’ cooperation and innovativeness will be considered. The impact of patent protection will be included in the analysis. The links between the patent protection of discoveries and the stability of cartels will be discussed. Specifically, an attempt will be made to answer the question whether patents are conducive to the break-up or stabilization of a cartel.
We invite authors and discussants interested in the issues of cartelization and monopolization of industries to participate in this panel session.