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The Markup falsification Adaptative Set

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  • Santiago Acerenza
  • Nestor Gandelman

Abstract

In this paper we provide a constructive way for researchers to salvage the classic De Loecker and Warzynski (2012) markup recovery procedure when falsified. To do this, we consider continuous relaxations of the standard assumptions behind markup estimation. By computing the values of the markup as a function of the relaxations across the set of non-falsified models, we obtain an identified set for the markup which generalizes the standard baseline markup estimand to account for possible falsification without the need to impose additional assumptions. We illustrate our results using Chilean data from Raval (2023).

Suggested Citation

  • Santiago Acerenza & Nestor Gandelman, 2026. "The Markup falsification Adaptative Set," Papers 2605.30493, arXiv.org, revised Jun 2026.
    • Handle: RePEc:arx:papers:2605.30493
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