Identification and Estimation of Online Price Competition With an Unknown Number of Firms Academic Article uri icon

abstract

  • SummaryThis paper considers identification and estimation of a general model for online price competition. We show that when the number of competing firms is unknown the underlying parameters of the model can still be identified and estimated employing recently developed results on measurement errors. We illustrate our methodology using UK data for personal digital assistants and employ the estimates to simulate competitive effects. Our results reveal that heightened competition has differential effects on the prices paid by different consumer segments. Copyright 2015 John Wiley & Sons, Ltd.

published proceedings

  • Journal of Applied Econometrics

altmetric score

  • 1.25

author list (cited authors)

  • An, Y., Baye, M. R., Hu, Y., Morgan, J., & Shum, M.

citation count

  • 6

publication date

  • January 2017

publisher