53 research outputs found
A Test of Non-Identifying Restrictions and Confidence Regions for Partially Identified Parameters
Welfare Effects of Distortionary Tax Incentives Under Preference Heterogeneity: An Application to Employer-Provided Electric Cars
The dynamics of retail oligopoly
This paper examines competition between supermarket chains using a dynamic
model of strategic investment. Employing a unique eleven year panel dataset of store
level observations that includes every supermarket operating in the United States, we
propose and estimate a fully dynamic model of chain level competition. Using a struc-
tural model of dynamic oligopoly where firms compete each period in a static stage
game, we estimate the dynamic parameters of the model using the methods proposed
in Bajari, Benkard, and Levin (2006). The estimation takes place in two stages. In the
first stage, the static parameters governing the outcome of product market competition
are estimated using a differentiated products discrete choice demand system. We then
employ a second, two-step procedure in which policy functions are first estimated from
each firm’s observed actions and outcomes are then matched to a (Markov perfect) equi-
librium condition using forward simulation. The parameters of the structural model will
then be used to evaluate the competitive impact of eliminating Superscenters using the
stochastic algorithm developed in Pakes and McGuire (2001)
Sharp Bounds on Functionals of the Joint Distribution in the Analysis of Treatment Effects
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