Public and Private Control in Mass Product Industry: The Cement Industry Cases (Studies in Industrial Organization, 3)

This paper presents findings from a study of the cement industries in France, Germany, Italy and the United Kingdom. Its purpose is to determine, as far as is possible, the extent to which the structure and performance of each industry has been influenced by the control of the market exercised by public auth­ orities, by the industries themselves, or by both acting together. The cement industry was chosen for its relative 'simplicity' and because it offers a good sample of different public policy approaches to the regulation of private markets. Although there are numerous major factors complicating inter­ national comparison, the industry is simple to analyse because it has a rela­ tively homogeneous product derived from very spread-out raw materials and it uses easily acquired technology to the diffusion of which there are no barriers. The different national industries discussed all had a similar history of private regulation of the market for the first half of the 20th century, during which time cartels proliferated, except when they occasionally collapsed under the pressure of price cutting stimulated by excess capacity. Since the Second World War, however, governments have differed in their approach to market regulation, and the four country studies illustrate a range of different approaches which covers the French experience of strict price control as an instrument ofindustrial policy, the Italian experience of weaker price control, a legal cartelin the U. K. This paper presents findings from a study of the cement industries in France, Germany, Italy and the United Kingdom. Its purpose is to determine, as far as is possible, the extent to which the structure and performance of each industry has been influenced by the control of the market exercised by public authƯ orities, by the industries themselves, or by both acting together. The cement industry was chosen for its relative 'simplicity' and because it offers a good sample of different public policy approaches to the regulation of private markets. Although there are numerous major factors complicating interƯ national comparison, the industry is simple to analyse because it has a relaƯ tively homogeneous product derived from very spread-out raw materials and it uses easily acquired technology to the diffusion of which there are no barriers. The different national industries discussed all had a similar history of private regulation of the market for the first half of the 20th century, during which time cartels proliferated, except when they occasionally collapsed under the pressure of price cutting stimulated by excess capacity. Since the Second World War, however, governments have differed in their approach to market regulation, and the four country studies illustrate a range of different approaches which covers the French experience of strict price control as an instrument ofindustrial policy, the Italian experience of weaker price control, a legal cartelin the U.K This study is unique in three respects: " it is a quantitative and systematic investigation of interlocking directorates; it is the first monographon the international network of interlocking directorates and the results of this analysis will be used to compare a number of economic theories of imperialism." The international structure of cooperation and competition among banks is analyzed by comparing international bank consortia Front Matter....Pages i-xi Cement: Its Production and Distribution....Pages 1-13 A General View of the Cement Industry in Europe....Pages 15-27 The United Kingdom....Pages 29-47 Italy....Pages 49-69 France....Pages 71-84 Germany....Pages 85-103 Conclusions....Pages 105-114 Back Matter....Pages 115-138 Of course, the pervasive and incessant politicisation of Community decision-making at the Ministerial level tends to diminish attention for what actually happens in the Community industrial markets, while also obscuring its profound economic impact on Europeah society.