Estimating Market Power and Strategies
Cambridge University Press, 8/30/2007
EAN 9780521011143, ISBN10: 0521011140
Paperback, 352 pages, 22.9 x 15.2 x 2 cm
Language: English
Originally published in English
This book presents, compares, and develops various techniques for estimating market power - the ability to set price profitably above marginal cost - and strategies - the game-theoretic plans used by firms to compete with rivals. The authors start by examining static model approaches to estimating market power. They extend the analysis to dynamic models. Finally, they develop methods to estimate firms' strategies directly and examine how these strategies determine market power. A detailed technical appendix reviews the relevant information-theoretic and other econometric models that are used throughout. Questions and detailed answers for students and researchers are provided in the book for easy use.
1. Introduction
2. Structure-conduct-performance
3. Industry models of market power
4. Differentiated-product structural models
5. Strategic reasons for a dynamic estimation model
6. Dynamic games involving economic fundamentals
7. Estimation of dynamic games involving economic fundamentals
8. Estimation of market power using a linear-quadratic model
9. Estimating strategies
theory
10. Estimating strategies
case studies
Statistical appendix
Answers.