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Main Authors: Matsumura, Yuri, Otani, Suguru
Format: Preprint
Published: 2023
Subjects:
Online Access:https://arxiv.org/abs/2301.06665
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author Matsumura, Yuri
Otani, Suguru
author_facet Matsumura, Yuri
Otani, Suguru
contents We revisit conduct parameter estimation in homogeneous goods markets to resolve the conflict between Bresnahan (1982) and Perloff and Shen (2012) regarding the identification and the estimation of conduct parameters. We point out that Perloff and Shen's (2012) proof is incorrect and its simulation setting is invalid. Our simulation shows that estimation becomes accurate when demand shifters are properly added in supply estimation and sample sizes are increased, supporting Bresnahan (1982).
format Preprint
id arxiv_https___arxiv_org_abs_2301_06665
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Resolving the Conflict on Conduct Parameter Estimation in Homogeneous Goods Markets between Bresnahan (1982) and Perloff and Shen (2012)
Matsumura, Yuri
Otani, Suguru
Econometrics
We revisit conduct parameter estimation in homogeneous goods markets to resolve the conflict between Bresnahan (1982) and Perloff and Shen (2012) regarding the identification and the estimation of conduct parameters. We point out that Perloff and Shen's (2012) proof is incorrect and its simulation setting is invalid. Our simulation shows that estimation becomes accurate when demand shifters are properly added in supply estimation and sample sizes are increased, supporting Bresnahan (1982).
title Resolving the Conflict on Conduct Parameter Estimation in Homogeneous Goods Markets between Bresnahan (1982) and Perloff and Shen (2012)
topic Econometrics
url https://arxiv.org/abs/2301.06665