IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-99-1537-8_3.html
   My bibliography  Save this book chapter

Specification and Estimation

In: Managerial Discretion in Imperfect Markets

Author

Listed:
  • T. V. S. Ramamohan Rao

    (Indian Institute of Technology Kanpur)

Abstract

Managerial discretion reveals itself only after the consequences of every decision can be estimated. This will consist of the range of relevant decisions, how and the extent to which decisions interact with others, the threshold values of the decisions that offer the maximum effect, the tradeoff between objectives and decisions, and several other features. Some of these effects pose formidable estimation problems due to lack of data, the inability to account for the constraints on the parameters posed by the decision-making process, and others. Some of these inverse optimal problems can be approached successfully. Some decisions have long-term effects on the firm, and in others cumulative use of decisions (not necessarily in a distributed lag sense) offers an explanation for the market value of the firm. Identifying such influences does pose difficult estimation problems. In addition, estimating the separate average cost curves resulting from one decision rather than another is as yet intractable however elegantly the theoretical model visualizes it.

Suggested Citation

  • T. V. S. Ramamohan Rao, 2023. "Specification and Estimation," Springer Books, in: Managerial Discretion in Imperfect Markets, chapter 0, pages 39-71, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-1537-8_3
    DOI: 10.1007/978-981-99-1537-8_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-99-1537-8_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.