Quantitative Techniques for Competition and Antitrust Analysis_11 pptx

... 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...

Ngày tải lên: 21/06/2014, 10:20

... 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...

Ngày tải lên: 21/06/2014, 10:20

... 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...

Ngày tải lên: 21/06/2014, 10:20

... 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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... 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...

Ngày tải lên: 21/06/2014, 14:20

... 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 ... 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 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 (200...

Ngày tải lên: 21/06/2014, 14:20

... 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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... quantity produced and input prices so will take the form C D C.Q;p 1 ;:::;p m ;uI˛/: Input demand schedules relate the optimal demand for inputs to the quantity pro- duced and the input prices ... understand this minimization problem first note that the observed data are the inputs and output levels for each firm and that the nonnegative weighted sums P n iD1  i q i and P n iD1 ...

Ngày tải lên: 22/06/2014, 02:20

... prices and wrongly conclude that the products are not related. 4.2.4 Rival Cost and Demand Data for Price Correlation Analysis As in all quantitative analysis, one cannot draw more information ... 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...

Ngày tải lên: 22/06/2014, 02:20

... the size of the market, a and b are demand parameters, and c and d are the cost parameters. The demand and costs parameters are unobserved and their effect is therefore included in the error ... individual demands and S identical consumers so that the market demand is Q Demand Market D S.abp/ and that equilibrium price p  is determined by the intersection of supply and deman...

Ngày tải lên: 22/06/2014, 02:20

... 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...

Ngày tải lên: 22/06/2014, 02:20

... generating good outcomes for consumers. On the other hand, vertical restraints and integration can generate harm to consumers and therefore form a legitimate focus of attention for a competition authority. 10.1.1 ... be much higher for high-end BMWs and Lexuses than for low-end Mazdas and Fords. 9.3 Demand Estimation in Merger Analysis The above introduction to the common mo...

Ngày tải lên: 22/06/2014, 02:20