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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Mode of access: World Wide Web.