IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Testing for Asymmetric Dynamic Oligopoly Models

Listed author(s):
  • Ralph Siebert and Christine Zulehner

In this paper, we specify a theoretical dynamic oligopoly model with regard to asymmetric firms. We then estimate a structural dynamic model of demand and pricing relations for the semiconductor industry. Using quarterly firm-level output and cost data as well as industry prices from 1974 to 1996, we estimate whether market conduct is symmetric or asymmetric, and how different groups of firms behave in the product market. We also control for other industry characteristics, such as multiproduct firms, learning by doing,\\ economies of scale, and spillover effects. The effects are also allowed to vary over the product life cycle. The main result of the paper shows, that in contrast to previous findings or assumptions, market conduct and mark-ups are asymmetric. Large firms behave like Cournot players, whereas small firms behave as if in perfect competition, indicating that they charge prices close to overall marginal costs. Consequently, small firms behave like price takers, which is a very reasonable result, as their small size does not allow for having an impact on market price. Moreover, we provide evidence for the multiproduct firm's character, learning and economies of scale effects. Finally, we provide evidence that a firm's current output and the rivals' output in the future are intertemporal strategic substitutes.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 182.

in new window

Date of creation: 01 Apr 2001
Handle: RePEc:sce:scecf1:182
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sce:scecf1:182. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.