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Collinearity in Linear Structural Models of Market Power

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Author Info
Jeffrey Perloff (University of California, Berkeley)
Edward Shen (Wells Fargo Bank)

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Abstract

The well-known structural model used to estimate market structure suffers from a severe collinearity problem if the marginal cost and demand equations are linear.

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Publisher Info
Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number 1020.

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Date of creation: 01 Dec 2001
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Handle: RePEc:cdl:indrel:1020

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Related research
Keywords: L13; C1;

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References listed on IDEAS
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  1. Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92. [Downloadable!] (restricted)
  2. Deodhar, Satish Y. & Sheldon, Ian M., 1997. "Market Power In The World Market For Soymeal Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July. [Downloadable!]
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This page was last updated on 2009-12-15.

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