On large market asymptotics for spatial price competition models

Taisuke Otsu; Keita Sunada

doi:10.1016/j.econlet.2023.111468

On large market asymptotics for spatial price competition models

Taisuke Otsu, Keita Sunada

Keio Economic Observatory(KEO)

Research output: Contribution to journal › Article › peer-review

Abstract

In spatial price competition models, demand factors have correlation with prices through the markup so that their identification power decreases as the number of product grows. Asymptotic results indicate lack of consistency of the estimator due to weak instruments.

Original language	English
Article number	111468
Journal	Economics Letters
Volume	234
DOIs	https://doi.org/10.1016/j.econlet.2023.111468
Publication status	Published - 2024 Jan

Keywords

Spatial price competition
Weak instruments

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2023.111468

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title = "On large market asymptotics for spatial price competition models",

abstract = "In spatial price competition models, demand factors have correlation with prices through the markup so that their identification power decreases as the number of product grows. Asymptotic results indicate lack of consistency of the estimator due to weak instruments.",

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author = "Taisuke Otsu and Keita Sunada",

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year = "2024",

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language = "English",

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On large market asymptotics for spatial price competition models

Abstract

Keywords

ASJC Scopus subject areas

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