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A comparison of testing and estimation of firm conduct

Author

Listed:
  • Magnolfi, Lorenzo
  • Sullivan, Christopher

Abstract

Researchers both test and estimate structural models to learn firm conduct. As testing imposes candidate models suggested by economic theory, it is less demanding of the instruments. However, relative performance under misspecification depends on whether a candidate model approximates the truth.

Suggested Citation

  • Magnolfi, Lorenzo & Sullivan, Christopher, 2022. "A comparison of testing and estimation of firm conduct," Economics Letters, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:ecolet:v:212:y:2022:i:c:s0165176522000246
    DOI: 10.1016/j.econlet.2022.110316
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    References listed on IDEAS

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    1. Steven Berry & Martin Gaynor & Fiona Scott Morton, 2019. "Do Increasing Markups Matter? Lessons from Empirical Industrial Organization," Journal of Economic Perspectives, American Economic Association, vol. 33(3), pages 44-68, Summer.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Firm conduct; Testing; Instruments; Misspecification;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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