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Distance, Demand, and Oligopoly Pricing

NBER Working Paper No. w3076

45 Pages Posted: 14 Apr 2007 Last revised: 29 Nov 2022

See all articles by Robert C. Feenstra

Robert C. Feenstra

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER)

James A. Levinsohn

University of Michigan; National Bureau of Economic Research (NBER)

Date Written: August 1989

Abstract

We demonstrate how to estimate a model of product demand and oligopoly pricing when products are multi-dimensionally differentiated. We provide an empirical counterpart to recent theoretical work on product differentiation. Using specifications informed by economic theory, we simultaneously estimate a demand system and price-cost margins for products differentiated in many dimensions.

Suggested Citation

Feenstra, Robert C. and Levinsohn, James A., Distance, Demand, and Oligopoly Pricing (August 1989). NBER Working Paper No. w3076, Available at SSRN: https://ssrn.com/abstract=980214

Robert C. Feenstra (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
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916-752-9240 (Phone)
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National Bureau of Economic Research (NBER)

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James A. Levinsohn

University of Michigan ( email )

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United States
734-763-2319 (Phone)
734-764-8063 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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