| Abstract: |
The object under consideration is the Ukrainian cement industry, which has
undergone a serious change in many dimensions, including ownership structure
and market structure. We analyze the dynamics of the output market structure
and test the hypothesis of a possible collusive behavior introduced by a
change in the ownership structure, especially by the big international cement
players entering the market. Empirical results point towards intensified
competition and reject the hypothesis of the collusion. Unconstrained
capacities and dynamic property redistribution make tacit collusion very
unstable and demand further optimization of production process. Patterns of
interregional trade, exporting behavior and mergers' dynamics pose questions
about the validity of the profit-maximizing behavior assumption. |