Feenstra, Robert C.

Distance, Demand, and Oligopoly Pricing / Robert C. Feenstra, James A. Levinsohn. - Cambridge, Mass. National Bureau of Economic Research 1989. - 1 online resource: illustrations (black and white); - NBER working paper series no. w3076 . - Working Paper Series (National Bureau of Economic Research) no. w3076. .

August 1989.

We demonstrate how to estimate a model of product demand and oligopoly pricing when products are multi-dimensionally differentiated. We provide an empirical counterpart to recent theoretical work on product differentiation. Using specifications informed by economic theory, we simultaneously estimate a demand system and price-cost margins for products differentiated in many dimensions.




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