This book presents, compares, and develops various techniques for
estimating market power - the ability to set price profitably above
marginal cost - and strategies - the game-theoretic plans used by
firms to compete with rivals. The authors start by examining static
model approaches to estimating market power. They extend the
analysis to dynamic models. Finally, they develop methods to
estimate firms' strategies directly and examine how these
strategies determine market power. A detailed technical appendix
reviews the relevant information-theoretic and other econometric
models that are used throughout. Questions and detailed answers for
students and researchers are provided in the book for easy use.
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