A central part of the "new empirical industrial organization" has been the study of market power in homogenous-product industries. This paper discusses extension of these methods to differentiated-products industries. The requirements for identification of conjectural variation parameters are shown to be hard to satisfy in practice. An alternative menu-approach is discussed.
- Conjectural variation parameters
- Market power
ASJC Scopus subject areas
- Economics and Econometrics