Quantitative Techniques for Competition and Antitrust Analysis_6 pdf

... 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 The...

Ngày tải lên: 21/06/2014, 10:20

... 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: ... generally used model for differentiated product industries. It is, for example, used in particular to model competition in markets for branded consumer goods. 1.3.2.4 Price Competi...

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... “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 variables and then observed demand ... Doing so, according to the standard OLS formula would dramatically reduce the uncer- tainty and standard errors of the OLS estimates, yet clearly there is no real new information...

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... consider any two normal goods, say cars and holidays. When the economy is good we will tend to see high demand, and hence high prices, for both cars and holidays and yet, of course, we would not want ... 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...

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... cost and independent of output and hence prices. If we further assume that S is the total market size and that (1) market demand is a scaled version of a representative individual’s demand and ... of standard errors which involve very large numbers 248 5. The Relationship between Market Structure and Price And the point to note is that both p and N are correlated with both deman...

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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) an...

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... Without information about costs, the only market events that one could use for identification are changes in demand. In this section and the next we consider respectively demand shifts and demand rotations ... the pricing and demand equations and the conduct parameter remains that we can find (i) a supply shifter that allows us to identify the demand curve, the parameter ˛ 1 , and (...

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... of the “before- and- after” method by taking into account changes in demand and supply conditions. By running a reduced-form regression of the price level on demand and cost factors 7 For a good ... ı Ä P j  P i x j  x i  P i  P h x i  x h  ; where P and x stand for price and quality of the product and h, i, and j are indicators for products of increasing quality. Qua...

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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 ... for j 2= f and also for each firm f: These J equations, together with the J demand equations, provide us with the structural form for this model. Note that the structural model involv...

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... this chapter. Before doing so we briefly discuss informal and semiformal quantitative methods for evaluating the incentive for foreclosure. 10.1. Rationales for Vertical Restraints and Integration ... demand specifications. 10.2. Measuring the Effect of Vertical Restraints 519 10.2.1 Informal and Semiformal Analysis of Incentives Informal quantitative analysis can sometimes be i...

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... 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 ... variation is useful for estimating demand as well. The price and also sales data from this experiment were collected and used in Davis (2002). 4.2. Price Level Differences and...

Ngày tải lên: 21/06/2014, 14:20

... 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 deman...

Ngày tải lên: 21/06/2014, 14:20

... Without information about costs, the only market events that one could use for identification are changes in demand. In this section and the next we consider respectively demand shifts and demand rotations ... parameters of demand and supply functions are useful because we will often want to understand the effect of one or more variables on either demand or supply, or both. For insta...

Ngày tải lên: 22/06/2014, 02:20

... those markets. Crawford (2000) provides an alternate model of demand for basic and premium cable using a similar data set allowing for consumer heterogeneity while Shum and Crawford (2007) add a ... agreements and concerted practices in the motor vehicle sector. 10.2. Measuring the Effect of Vertical Restraints 519 10.2.1 Informal and Semiformal Analysis of Incentives Informal qu...

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... CA: University of California Press. Hurwicz, L., and H. Uzawa. 1971. On the integrability of demand functions. In Preferences, Utility and Demand (ed. J. Chipman, L. Hurwicz, M. Richter, and H. Sonnenschein). ... and P. Rey. 2008. Resale price maintenance and collusion. RAND Journal of Economics 38:983–1001. Just, R., and W. Chern. 1980. Tomatoes, technology and oligopsony. Bell...

Ngày tải lên: 22/06/2014, 02:20