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...

Ngày tải lên: 21/06/2014, 10:20

... “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...

Ngày tải lên: 21/06/2014, 10:20

... 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...

Ngày tải lên: 21/06/2014, 14:20

... 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

... 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