Contributors |
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xiii | |
Introduction to the series |
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xv | |
Preface |
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xvii | |
Chapter 1 Foundations of demand estimation |
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1 | (62) |
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3 | (1) |
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3 | (1) |
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3 | (1) |
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2 The challenges of demand estimation |
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4 | (10) |
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2.1 The first fundamental challenge |
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4 | (2) |
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2.2 The second fundamental challenge |
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6 | (1) |
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2.3 Demand is not regression |
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6 | (1) |
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2.4 A surprisingly difficult case: exogenous prices |
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7 | (1) |
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2.5 Many common tools fall short |
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8 | (4) |
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2.6 Balancing flexibility and practicality |
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12 | (1) |
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13 | (1) |
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14 | (7) |
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3.1 Random utility models |
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15 | (1) |
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16 | (3) |
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3.3 Why random coefficients? |
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19 | (2) |
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21 | (11) |
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22 | (1) |
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23 | (5) |
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28 | (2) |
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4.4 Computing the BLP estimator and standard errors |
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30 | (2) |
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5 Nonparametric identification: market-level data |
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32 | (12) |
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5.1 Insights from parametric models |
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33 | (3) |
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5.2 Nonparametric demand model |
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36 | (3) |
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5.3 Identification via instruments |
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39 | (1) |
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40 | (4) |
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6 Micro data, panels, and ranked choices |
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44 | (6) |
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44 | (4) |
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48 | (1) |
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49 | (1) |
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50 | (1) |
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7 Nonparametric identification with micro data |
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50 | (6) |
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7.1 Nonparametric demand model |
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51 | (2) |
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53 | (3) |
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56 | (1) |
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8 Some directions for future work |
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56 | (1) |
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57 | (6) |
Chapter 2 Empirical models of demand and supply in differentiated products industries |
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63 | (78) |
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64 | (2) |
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66 | (7) |
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68 | (3) |
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2.2 Estimation and results |
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71 | (1) |
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72 | (1) |
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73 | (10) |
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73 | (2) |
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3.2 Discrete choice demand models |
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75 | (8) |
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83 | (21) |
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4.1 The estimation problem |
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84 | (1) |
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4.2 What variation in the data can identify the parameters? |
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85 | (5) |
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4.3 The general estimation procedure |
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90 | (10) |
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100 | (4) |
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104 | (15) |
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5.1 The workhorse model of horizontal competition |
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105 | (2) |
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5.2 Distinguishing between models of competition |
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107 | (4) |
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5.3 Adding retailers into the mix |
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111 | (3) |
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114 | (5) |
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6 Extensions of the demand model |
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119 | (13) |
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6.1 Extensions to the static demand model |
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119 | (5) |
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124 | (8) |
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132 | (1) |
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132 | (9) |
Chapter 3 An industrial organization perspective on productivity |
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141 | (84) |
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143 | (2) |
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143 | (1) |
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1.2 Productivity conceptualized |
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144 | (1) |
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2 Empirical facts about productivity at the producer level |
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145 | (2) |
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146 | (1) |
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2.2 Persistence within producers |
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147 | (1) |
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147 | (1) |
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3 A simple model of equilibrium productivity dispersion |
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147 | (5) |
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148 | (1) |
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148 | (1) |
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149 | (1) |
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3.4 Empirical implications |
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149 | (3) |
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4 Measurement of output and inputs |
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152 | (5) |
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152 | (2) |
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154 | (2) |
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156 | (1) |
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5 Recovering productivity from the data |
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157 | (37) |
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5.1 Operating environment and unit of analysis |
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158 | (4) |
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162 | (2) |
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5.3 Production function estimation (producer level) |
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164 | (18) |
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5.4 Multi-product production |
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182 | (6) |
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5.5 Cost versus production functions |
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188 | (2) |
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5.6 Measurement and specification errors |
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190 | (4) |
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194 | (15) |
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6.1 Producer-level productivity analysis |
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195 | (5) |
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6.2 Aggregate analysis: resource (re/mis)allocation |
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200 | (7) |
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207 | (2) |
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209 | (7) |
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7.1 Market power and productivity data |
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209 | (6) |
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7.2 Technological change and market-level outcomes |
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215 | (1) |
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216 | (1) |
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216 | (9) |
Chapter 4 Dynamic games in empirical industrial organization |
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225 | (120) |
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227 | (3) |
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1.1 Role of dynamic games in empirical industrial organization |
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227 | (2) |
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1.2 Organization of this chapter |
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229 | (1) |
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230 | (12) |
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230 | (2) |
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2.2 Markov perfect Nash equilibrium |
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232 | (3) |
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235 | (1) |
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2.4 Extensions of the basic framework |
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236 | (6) |
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3 Identification and estimation |
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242 | (30) |
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242 | (2) |
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244 | (9) |
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253 | (15) |
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3.4 The promise of machine learning |
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268 | (4) |
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272 | (56) |
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4.1 Earlier empirical work on dynamic games |
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272 | (14) |
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4.2 Innovation and market structure |
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286 | (9) |
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4.3 Antitrust policy towards mergers |
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295 | (4) |
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299 | (4) |
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303 | (6) |
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309 | (7) |
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4.7 Uncertainty and firms' investment decisions |
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316 | (5) |
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4.8 Network competition in the airline industry |
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321 | (2) |
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323 | (2) |
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325 | (3) |
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328 | (3) |
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331 | (14) |
Chapter 5 Moment inequalities and partial identification in industrial organization |
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345 | (88) |
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346 | (3) |
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2 Definitions and background |
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349 | (5) |
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354 | (21) |
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3.1 Primitive assumptions |
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355 | (4) |
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359 | (3) |
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362 | (13) |
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4 Generalized discrete choice approaches |
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375 | (25) |
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4.1 Models of discrete games with complete information |
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376 | (2) |
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378 | (5) |
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4.3 Using both necessary and sufficient conditions for Nash equilibrium |
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383 | (13) |
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396 | (3) |
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4.5 Alternative assumptions |
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399 | (1) |
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5 Estimation and inference |
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400 | (14) |
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401 | (2) |
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5.2 Overview of inference |
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403 | (2) |
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5.3 Moment inequality approach |
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405 | (5) |
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5.4 Criterion function approach |
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410 | (1) |
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411 | (1) |
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412 | (2) |
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6 Implementation of partial identification |
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414 | (6) |
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6.1 Computational considerations |
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414 | (1) |
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6.2 Simulation based approaches |
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415 | (2) |
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6.3 Reporting empirical results from a partially identified model |
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417 | (3) |
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420 | (2) |
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422 | (11) |
Chapter 6 Frictions in product markets |
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433 | (52) |
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434 | (1) |
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435 | (9) |
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2.1 Vertical differentiation |
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436 | (3) |
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2.2 Market power and secondary markets |
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439 | (1) |
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440 | (3) |
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2.4 Role of intermediaries in overcoming transaction costs |
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443 | (1) |
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444 | (6) |
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444 | (4) |
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448 | (1) |
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3.3 Role of intermediaries in overcoming asymmetric information |
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449 | (1) |
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450 | (20) |
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451 | (9) |
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4.2 Empirical contributions |
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460 | (6) |
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4.3 The role of intermediaries in search markets |
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466 | (4) |
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470 | (7) |
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5.1 The role of intermediaries in matching markets |
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475 | (2) |
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477 | (8) |
Chapter 7 Two-sided markets, pricing, and network effects |
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485 | (108) |
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487 | (8) |
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1.1 Terminology and background |
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490 | (5) |
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495 | (14) |
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2.1 Basic framework and notation |
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495 | (2) |
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2.2 Profit-maximizing prices |
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497 | (2) |
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2.3 Welfare-maximizing prices |
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499 | (1) |
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500 | (1) |
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2.5 Miscellaneous: chicken & egg problem, non-negative prices, distortionary taxation |
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501 | (6) |
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507 | (2) |
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3 Competition for the market |
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509 | (9) |
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3.1 Divide-and-conquer strategies |
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509 | (3) |
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3.2 Congestion within sides |
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512 | (2) |
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514 | (1) |
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515 | (3) |
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4 Competition on the market |
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518 | (22) |
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519 | (8) |
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527 | (6) |
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4.3 Concentration, merger and collusion |
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533 | (3) |
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4.4 Exclusivity and bundling |
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536 | (4) |
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5 Alternative modeling of competition, coordination and beliefs |
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540 | (7) |
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5.1 Richer price structures |
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540 | (4) |
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544 | (2) |
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546 | (1) |
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547 | (11) |
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6.1 Second-degree price discrimination and matching design |
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547 | (8) |
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6.2 Targeting and third-degree price discrimination |
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555 | (1) |
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6.3 Dynamic arrivals and evolving private information |
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556 | (2) |
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7 Identification of network effects |
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558 | (14) |
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7.1 Direct network effects |
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559 | (4) |
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7.2 Some solutions for direct network effects |
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563 | (7) |
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7.3 Indirect network effects |
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570 | (2) |
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8 Estimating indirect network effects |
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572 | (3) |
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572 | (1) |
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8.2 Exclusions in two-sided markets |
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572 | (3) |
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9 Empirical work on pricing in platform studies |
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575 | (5) |
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576 | (2) |
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578 | (1) |
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579 | (1) |
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580 | (1) |
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581 | (12) |
Chapter 8 Information markets and nonmarkets |
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593 | (80) |
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594 | (3) |
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2 Buying and selling information |
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597 | (9) |
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2.1 Value of information and experiment |
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597 | (3) |
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600 | (2) |
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602 | (2) |
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604 | (1) |
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2.5 Returns from information and data |
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605 | (1) |
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3 Markets for information |
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606 | (8) |
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3.1 Value of information in a normal quadratic environment |
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606 | (2) |
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3.2 Selling information to competing firms |
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608 | (2) |
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3.3 Information sharing among competing firms |
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610 | (1) |
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610 | (2) |
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3.5 Data markets and data externalities |
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612 | (2) |
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4 Instruments to trade and monetize information |
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614 | (10) |
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4.1 Third-degree price discrimination |
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614 | (5) |
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4.2 Ratchet effect and privacy |
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619 | (2) |
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4.3 Ratings and recommender systems |
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621 | (2) |
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4.4 Certification and expert markets |
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623 | (1) |
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5 Forecasting and aggregation of predictions |
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624 | (20) |
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5.1 Forecasting nonmarkets |
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624 | (4) |
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628 | (8) |
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5.3 Automated market maker |
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636 | (1) |
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5.4 Performance of prediction markets |
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637 | (7) |
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644 | (12) |
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6.1 Organization of science |
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645 | (2) |
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647 | (1) |
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6.3 Selection, publication, and funding |
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648 | (1) |
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6.4 Economics of statistical inference |
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649 | (7) |
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656 | (1) |
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657 | (16) |
Chapter 9 Structural empirical analysis of contracting in vertical markets |
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673 | (70) |
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674 | (2) |
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676 | (25) |
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2.1 Multilateral settings with externalities |
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681 | (20) |
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701 | (23) |
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3.1 Supply: modeling vertical contracting |
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702 | (11) |
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3.2 Supply: estimation and identification |
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713 | (3) |
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716 | (8) |
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724 | (11) |
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4.1 Horizontal mergers in vertical markets |
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724 | (2) |
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4.2 Effects of vertical integration and mergers |
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726 | (2) |
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728 | (3) |
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731 | (2) |
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4.5 Exclusive vertical contracts |
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733 | (2) |
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735 | (1) |
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736 | (7) |
Index |
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743 | |