Quantitative Techniques for Competition and Antitrust Analysis 17 ppt

... result from a brand’s image. Suppose we face a market with two differentiated goods and the following linear demand system: Demand for good 1: q 1 D a 1  b 11 p 1 C b 12 p 2 ; Demand for good 2: ... products and can be shared. For instance, once the reputation embodied in a brand name has been built, it can be cheaper for a firm to launch other successful products under that same...

Ngày tải lên: 21/06/2014, 14:20

... in Fisher (1980, 1986) and Finkelstein and Levenbach (1983). For more general econometrics texts, see, for example, Greene (2007) and Wooldridge (2007). And for an advanced and more technical but ... “reduced-form” equations. Estimating a reduced form for market prices and quantities will require data on equilibrium prices and quantities in that market as dependent varia...

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... price and quantity data alone it is impossible to empirically quantify the effect of an increase in prices on the quantity demanded and therefore to extract information such as the demand elasticity. A ... in matrix form and stack the sets of observations in their groups and note that the resulting matrices X g and X h will satisfy X 0 g X h D 0 for g ¤ h because d ig d ih D 0 (se...

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... marginal customers—those for whom store A and store B are pretty close substitutes for one another but before the price rise at A there was a small preference for going to A. On the other hand, the CC’s ... the prices depend on the intercepts of the demand equations (a 1 and a 2 ), the own-price effects (b 11 and b 22 ), and the cross-price effects (b 12 and b 21 ). They also...

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... information about demand and in particular the own-price elastic- 40 This section draws on Harris and Simons (1989) and also the working papers by O’Brien and Wickelgren (2003) and by Katz and ... demand curve. First, following Landes and Posner (1981) and Scheffman and Spiller (1987) consider the dominant-firm model. In that model, the dominant firm faced a mar- ket demand D...

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... to allow for firm heterogeneity and Mazzeo (2002) and Seim (2006) extended the analysis and estimation of entrygames to allow for product differentiation. Davis (2006c) allowed for some forms of ... jurisdictions. 4 See, for example, the work by Sutton (1991), Klepper (1996), and Klepper and Simons (2000), and in the strategy literature see Markides and Geroski (2005)...

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... firm and market demand for understanding competition. For example, we have seen that demand is important in determining firm behavior such as pricing decisions and we have also seen that demand ... demand for sugar and for that purpose we have collected data on the quantity of sugar sold in millions of pounds and the price at which they were sold in cents per pounds. The first s...

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... alternative functional form. For example, Berry et al. (1995) believe that the demand for a type of car will depend on a consumer’s level of income and work with the natural logarithm formulation, v j .y ... elasticity of segment demand is 2:6 for premium beer, 2:7 for popular beer, and 2:4 for light beer. These price elasticities could be used as important evidence toward a...

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... 519 10.2.1 Informal and Semiformal Analysis of Incentives Informal quantitative analysis can sometimes be insightful for evaluating the incen- tive for foreclosure. An example of such an analysis ... strategies in the rest of this chapter. Before doing so we briefly discuss informal and semiformal quantitative methods for evaluating the incentive for foreclosure. 10.2. Me...

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... small. For Lara, Adrian, and Tristan For Sara This page intentionally left blank Quantitative Techniques for Competition and Antitrust Analysis 8 1. The Determinants of Market Outcomes Demand at ... since understanding these key elements of economic analysis is crucial for an appropriate use of quantitative techniques. 1.1 Demand Functions and Demand Elasticities...

Ngày tải lên: 21/06/2014, 10:20