DETERMINISTIC NONPARAMETRIC MARKET POWER TESTS: AN EMPIRICAL INVESTIGATION

Kellie Raper and Corinna M. Noelke

No 11757, Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics

Abstract: A review of recent literature reflects the development of several deterministic nonparametric market power tests. We use Monte Carlo experiments to evaluate the veracity of four monopolistic and four monopsonistic market power tests that use the deterministic nonparametric approach. The experiments are implemented using data from ten known market structures. When results are compared to Raper, Love, and Shumway's (1999) findings concerning parametric market power tests in the Bresnahan-Lau tradition, we find that the parametric tests perform well while only two of the nonparametric tests appear able to identify market power.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 26
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/11757/files/sp01-53.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:midasp:11757

DOI: 10.22004/ag.econ.11757

Access Statistics for this paper

More papers in Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().