Identifying Conduct Parameters with Separable Demand: A Counterexample to Lau (1982)

Yuri Matsumura and Suguru Otani

Papers from arXiv.org

Abstract: We provide a counterexample to the conduct parameter identification result established in the foundational work of Lau (1982), which generalizes the identification theorem of Bresnahan (1982) by relaxing the linearity assumptions. We identify a separable demand function that still permits identification and validate this case both theoretically and through numerical simulations.

Date: 2024-10
New Economics Papers: this item is included in nep-ecm
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