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Identifying Conduct Parameters with Separable Demand: A Counterexample to Lau (1982)

Yuri Matsumura, Suguru Otani

arXiv 22 Oct 2024 · Econometrics

arXiv:2410.16998 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide a counterexample to the conduct parameter identification result established in the foundational work of Lau (1982), which generalizes the identification theorem of Bresnahan (1982) by relaxing the linearity assumptions. We identify a separable demand function that still permits identification and validate this case both theoretically and through numerical simulations.

Citation extraction

27
references
52
in-text mentions
27
distinct cited
1
self-citations
9,407
main-text words

appendix boundary found by appendix_command · 59% of the source is main text. Read the extracted text to check this.

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 Identified1.000105100%
2Lau, Lawrence J (1982) On Identifying the Degree of Competitiveness from Industry Price and Output Data1.00095100%
3Goldman, S. M. and Uzawa, H (1964) A Note on Separability in Demand Analysis0.9416383%
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%
6Menezes, Flavio M. and Quiggin, John (2020) The Strategic Industry Supply Curve0.51121100%
7Gaurab Aryal and Anirban Chattopadhyaya and Federico Ciliberto (2025) Bridging Quasi-Experimental and Structural Approaches for Robust Evaluation of US Airline Mergers0.40511100%
8Backus, Matthew and Conlon, Christopher and Sinkinson, Michael (2021) Common Ownership and Competition in the Ready-to-Eat Cereal Industry0.40511100%
9Beringe, Konstantin and Whitmeyer, Mark (2025) Robust Welfare under Imperfect Competition0.40511100%
10Bresnahan, Timothy F (1981) Duopoly Models with Consistent Conjectures0.40511100%

Showing the top 10 of 27 scored citations.