This book combines practical guidance and theoretical background for analysts using empirical techniques in competition and antitrust investigations. Peter Davis and Eliana Garcés show how to integrate empirical methods, economic theory, and broad evidence about industry in order to provide high-quality, robust empirical work that is tailored to the nature and quality of data available and that can withstand expert and judicial scrutiny. Davis and Garcés describe the toolbox of empirical techniques currently available, explain how to establish the weight of pieces of empirical work, and make some new theoretical contributions. The book consistently evaluates empirical techniques in light of the challenge faced by competition analysts and academics--to provide evidence that can stand up to the review of experts and judges. The book's integrated approach will help analysts clarify the assumptions underlying pieces of empirical work, evaluate those assumptions in light of industry knowledge, and guide future work aimed at understanding whether the assumptions are valid. Throughout, Davis and Garcés work to expand the common ground between practitioners and academics.
Cover Half Title Title Copyright Dedication Contents Preface Acknowledgments 1 The Determinants of Market Outcomes 1.1 Demand Functions and Demand Elasticities 1.2 Technological Determinants of Market Structure 1.3 Competitive Environments: Perfect Competition, Oligopoly, and Monopoly 1.4 Conclusions 2 Econometrics Review 2.1 Multiple Regression 2.2 Identification of Causal Effects 2.3 Best Practice in Econometric Exercises 2.4 Conclusions 2.5 Annex: Introduction to the Theory of Identification 3 Estimation of Cost Functions 3.1 Accounting and Economic Revenue, Costs, and Profits 3.2 Estimation of Production and Cost Functions 3.3 Alternative Approaches 3.4 Costs and Market Structure 3.5 Conclusions 4 Market Definition 4.1 Basic Concepts in Market Definition 4.2 Price Level Differences and Price Correlations 4.3 Natural Experiments 4.4 Directly Estimating the Substitution Effect 4.5 Using Shipment Data for Geographic Market Definition 4.6 Measuring Pricing Constraints 4.7 Conclusions 5 The Relationship between Market Structure and Price 5.1 Framework for Analyzing the Effect of Market Structure on Prices 5.2 Entry, Exit, and Pricing Power 5.3 Conclusions 6 Identification of Conduct 6.1 The Role of Structural Indicators 6.2 Directly Identifying the Nature of Competition 6.3 Conclusions 6.4 Annex: Identification of Conduct in Differentiated Markets 7 Damage Estimation 7.1 Quantifying Damages of a Cartel 7.2 Quantifying Damages in Abuse of Dominant Position Cases 7.3 Conclusions 8 Merger Simulation 8.1 Best Practice in Merger Simulation 8.2 Introduction to Unilateral Effects 8.3 General Model for Merger Simulation 8.4 Merger Simulation: Coordinated Effects 8.5 Conclusions. 9 Demand System Estimation 9.1 Demand System Estimation: Models of Continuous Choice 9.2 Demand System Estimation: Discrete Choice Models 9.3 Demand Estimation in Merger Analysis 9.4 Conclusions 10 Quantitative Assessment of Vertical Restraints and Integration 10.1 Rationales for Vertical Restraints and Integration 10.2 Measuring the Effect of Vertical Restraints 10.3 Conclusions Conclusion References Index.
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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2021. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.