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A new test for monopoly with limited cost data

  • Moul, Charles C.
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    The test’s intuition is that demand estimates in isolation may diverge from demand estimates under joint estimation with cost if the monopoly null hypothesis is false. Simulations indicate that the test can have substantial power using duopoly data.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176512003928
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 117 (2012)
    Issue (Month): 3 ()
    Pages: 891-894

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    Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:891-894
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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    1. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-56, June.
    3. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    4. Steven Berry & Joel Waldfogel, 1996. "Free Entry and Social Inefficiency in Radio Broadcasting," NBER Working Papers 5528, National Bureau of Economic Research, Inc.
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