Cartelization and firm performance in Upper Silesia 1880–1913

Abstract

Abstract In this article the effects of cartelization on firms’ efficiency are investigated using the example of an early twentieth century coal-mining cartel in Upper Silesia: the Upper Silesian Coal Convention. Established in 1898, the cartel comprised various types of private, as well as state-owned, mining enterprises. Using a microeconomic dataset based on firm-level data of the Upper Silesian mines, I focus on the cartel’s effect on efficiency. The cartel did not significantly reduce technical efficiency among mines. This finding confirms previous research on cartels’ effects on efficiency.