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Conduct Parameter Estimation in Homogeneous Goods Markets with Equilibrium Existence and Uniqueness Conditions: The Case of Log-linear Specification

Yuri Matsumura, Suguru Otani

arXiv 17 Jul 2024 · Econometrics · 1 citations (OpenAlex)

arXiv:2407.12422 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a constrained generalized method of moments estimator (GMM) incorporating theoretical conditions for the unique existence of equilibrium prices for estimating conduct parameters in a log-linear model with homogeneous goods markets. First, we derive such conditions. Second, Monte Carlo simulations confirm that in a log-linear model, incorporating the conditions resolves the problems of implausibly low or negative values of conduct parameters.

Citation extraction

11
references
29
in-text mentions
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distinct cited
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self-citations
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main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bresnahan, Timothy F (1982) The oligopoly solution concept is identified0.9416383%
2Lau, Lawrence J (1982) On identifying the degree of competitiveness from industry price and output data0.73732100%
3Matsumura, Yuri and Otani, Suguru (2023) Resolving the conflict on conduct parameter estimation in homogeneous goods markets between Bresnahan (1982) and Perloff and She… self0.6066233%
4Corts, Kenneth S (1999) Conduct parameters and the measurement of market power0.51121100%
5Magnolfi, Lorenzo and Sullivan, Christopher (2022) A comparison of testing and estimation of firm conduct0.51121100%
6Mérel, Pierre R (2009) Measuring market power in the French Comté cheese market0.51121100%
7Okazaki, Tetsuji and Onishi, Ken and Wakamori, Naoki (2022) Excess Capacity and Effectiveness of Policy Interventions: Evidence from the Cement Industry0.51121100%
8Matsumura, Yuri and Otani, Suguru (2024) Challenges in Statistically Rejecting the Perfect Competition Hypothesis Using Imperfect Competition Data self0.40511100%
9Yuri Matsumura and Suguru Otani (2025) Revisiting the Identification of the Conduct Parameter in Homogeneous Goods Markets self0.40511100%
10Goldman, S. M. and Uzawa, H (1964) A Note on Separability in Demand Analysis0.000310%

Showing the top 10 of 11 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Challenges in Statistically Rejecting the Perfect Competition Hypothesis Using Imperfect Competition Data0.40511