Automobile Prices in Market Equilibrium
This paper develops techniques for empirically analyzing demand and supply in differentiated product markets and then applies these techniques to the U.S. automobile industry. The authors' framework enables one to obtain estimates of demand and cost parameters for a class of oligopolistic differentiated products markets. These estimates can be obtained using only widely available product-level and aggregate consumer-level data, and they are consistent with a structural model of equilibrium in an oligopolistic industry. Applying these techniques, the authors obtain parameters for essentially all autos sold over a twenty-year period. Copyright 1995 by The Econometric Society.
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Volume (Year): 63 (1995)
Issue (Month): 4 (July)
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