On large market asymptotics for spatial price competition models

Taisuke Otsu and Keita Sunada

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In spatial price competition models, demand factors have correlation with prices through the markup so that their identification power decreases as the number of product grows. Asymptotic results indicate lack of consistency of the estimator due to weak instruments.

Keywords: spatial price competition; weak instruments (search for similar items in EconPapers)
JEL-codes: C13 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2024-01-01
New Economics Papers: this item is included in nep-com, nep-ecm and nep-ure
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Published in Economics Letters, 1, January, 2024, 234. ISSN: 0165-1765

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