Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés 3 pptx
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_1 docx
... chapter 3.
1 .3 Competitive Environments: Perfect Competition, Oligopoly, and
Monopoly
In a perfectly competitive environment, market prices and output are determined by
the interaction of demand and ... to q
1
C q
2
D Q:
33
For the conditions required for existence of a solution to these nonlinear equations and hence for
Nash equilibrium, see Novshek (1985) and Amir (1...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_2 pptx
... (0.0 03) —
log.P
Budweiser
/ 0. 936 0 .37 2 0.2 43 0.150 —
(0.041) (0. 231 ) (0. 034 ) (0.018) —
log.P
Molson
/ 0 .37 2 0.804 0.1 83 0. 130 —
(0. 231 ) (0. 031 ) (0.022) (0.012) —
log.P
Labatts
/ 0.2 43 0.1 83 0.588 ... b
2
x
2i
C b
3
x
3i
C e
i
:
For given parameter values, the predicted value of y
i
for given estimates and values
of .x
1i
;x
2i
;x
3i
/ is
Oy
i
DOa C
O
b
1
x
1...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_3 pptx
... caused by movement in costs (which is
in addition to any variation in prices explained by movements in the demand curve
caused by the exogenous demand shifting variables X
2
).
Standard errors and ... what can be achieved in an investigation) and reasonable empirical
strategies for compensating for missing information and (2) there is variation in
126 3. Estimation of Cost Fu...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_5 pdf
... produced by a different firm which respectively maximize
12
For a critique of the use of price correlation analysis, see, for example, Werden and Froeb (1993a).
A response is provided by Sherwin (19 93) .
4.1. ... related thesis and analysis of popcorn prices is provided by Gil and Hartmann (2007).
4 .3. Natural Experiments 187
Orange
North Haven
New Haven
Branford
Milford
I...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_6 pdf
... 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 (20 03) and by Katz and ... test for market def-
inition. In doing so, Ivaldi and Lorincz obtain the same results for the competition
policy market definition for low-end computer servers but the mid...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_8 pptx
... exited
1 Delta 281 43 28 15 .3 10.0
2 Eastern 257 33 36 12.8 14.0
3 United 231 36 10 15.6 4 .3
4 American 207 22 12 10.6 5.8
5 USAir 201 20 17 10.0 5.8
6 TWA 174 22 23 12.6 13. 2
7 Braniff 112 10 ... 9 .3
9 Republic 69 9 6 13. 0 8.7
10 Continental 62 9 5 14.5 8.1
11 Piedmont 61 14 2 23. 0 3. 3
12 Western 51 6 7 11.8 13. 7
13 Pan Am 45 1 1 2.2 2.2
14 Ozark 28 18 4 64 .3 14 .3
15...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_12 potx
... 37 6
36 4 75 1 03 301 30 3 150 180 30 1
299 75 96
0.5 451
427 90 120 36 1
34 9 181 206 36 1
34 3 90 108
0.6 564
521 1 13 144 451
419 226 245 451
410 1 13 127
0.7 752
678 150 185 602
534 30 1 ... 2; 2/ .3; 3/ .4; 2/ .5; 1/ 6 (Cartel)
1 28.88 63. 39 105 139 188.54 270.8
2 28.88 63. 39 105 77.6 48.99
3 28.88 63. 39
4 28.88
5 28.88
6 28.88
Industry profits 1 73...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_13 pot
... equiva-
lent and we can impose a normalization on the model (or, more precisely, we must
36
See, for example, the canonical graduate textbook on industrial organization by Tirole (19 93) .
37
For a discussion ... products (and as usual individuals) and has a
standard type I extreme value density function:
39
f
"
J
."
j
/ D expfexp."
j
/ "
j
g:
The resul...
Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_15 pptx
... 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 ... 0.02 43
(0.0065)
LA
a
October — — 0. 139 0
(0.0064)
SD
a
February — — 0.0851
(0.0 036 )
SD
a
June — — 0. 030 4
(0.0 036 )
SD
a
October — — 0.0545
(0.0 036 )
Adjusted R
2
0 .37 72...
Quantitative Techniques for Competition and Antitrust Analysis_1 pdf
... 3; 500/ D
£420 million. Harberger triangles need not always be small.
For Lara, Adrian, and Tristan
For Sara
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Quantitative Techniques for
Competition and Antitrust ... since understanding these
key elements of economic analysis is crucial for an appropriate use of quantitative
techniques.
1.1 Demand Functions and Demand Elastici...