Estimating Market Power in Homogenous Product Markets Using a Composed Error Model : Application to the California Electricity Market
This study proposes a novel econometric approach to estimating market power in homogenous product markets. We use a composed error model to estimate the stochastic part of firms’ strategic pricing equation. This part is formed by two random variables: a traditional error term, which captures random...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | en_US |
| Published: |
Western Economic Association International
2017
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/28545 |