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Recent Developments in Empirical IO: Dynamic Demand and Dynamic Games

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  • Victor Aguirregabiria
  • Victor Aguirregabiria
  • Aviv Nevo
  • Aviv Nevo

Abstract

Empirically studying dynamic competition in oligopoly markets requires dealing with large states spaces and tackling difficult computational problems, while handling heterogeneity and multiple equilibria. In this paper, we discuss some of the ways recent work in Industrial Organization has dealt with these challenges. We illustrate problems and proposed solutions using as examples recent work on dynamic demand for differentiated products and on dynamic games of oligopoly competition. Our discussion of dynamic demand focuses on models for storable and durable goods and surveys how researchers have used the \

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-419.

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Length: 60 pages
Date of creation: 31 Dec 2010
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-419

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Keywords: Industrial Organization; Oligopoly competition; Dynamic demand; Dynamic games; Estimation; Counterfactual experiments; Multiple equilibria; Inclusive values; Unobserved heterogeneity.;

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Cited by:
  1. Robin S. Lee, 2013. "Vertical Integration and Exclusivity in Platform and Two-Sided Markets," American Economic Review, American Economic Association, American Economic Association, vol. 103(7), pages 2960-3000, December.
  2. Lou, Weifang & Prentice, David & Yin, Xiangkang, 2012. "What difference does dynamics make? The case of digital cameras," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 30(1), pages 30-40.
  3. Patrick Bayer & Robert McMillan & Alvin Murphy & Christopher Timmins, 2011. "A Dynamic Model of Demand for Houses and Neighborhoods," NBER Working Papers 17250, National Bureau of Economic Research, Inc.
  4. Vivienne Pham & David Prentice, 2013. "A Random Coefficients Logit Analysis of the Counterfactual: A Merger and Divestiture in the Australian Cigarette Industry," Working Papers, School of Economics, La Trobe University 2013.04, School of Economics, La Trobe University.
  5. Aguirregabiria, Victor & Ho, Chun-Yu, 2009. "A Dynamic Oligopoly Game of the US Airline Industry: Estimation and Policy Experiments," MPRA Paper 16739, University Library of Munich, Germany.
  6. repec:ltr:wpaper:2010.08 is not listed on IDEAS
  7. Panle Jia Barwick & Parag A. Pathak, 2011. "The Costs of Free Entry: An Empirical Study of Real Estate Agents in Greater Boston," NBER Working Papers 17227, National Bureau of Economic Research, Inc.
  8. Vivienne Pham & David Prentice, 2010. "An empirical Analysis of the Counter-factual: A Merger and Divestiture in the Australian Cigarette Industry," Working Papers, School of Economics, La Trobe University 2010.08, School of Economics, La Trobe University.
  9. Hovhannisyan, Vardges & Stiegert, Kyle W. & Bozic, Marin, 2013. "On Endogeneity Of Retail Market Power In An Equilibrium Analysis: A Control Function Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149830, Agricultural and Applied Economics Association.
  10. Friberg, Richard & Huse, Cristian, 2012. "How to use demand systems to evaluate risky projects, with an application to automobile production," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9266, C.E.P.R. Discussion Papers.

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