Collinearity in Linear Structural Models of Market Power
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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- Perloff,Jeffrey M. & Karp,Larry S. & Golan,Amos, 2007.
"Estimating Market Power and Strategies,"
Cambridge University Press, number 9780521804400, October.
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- 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.
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