ajaz_eco_204_2012_2013_chapter_16_Market_Power

25259 025259 025259 104 149 150 151 35064 2160 2376

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: al simple regression model . ⏟ To estimate the parameter (which is the same as the ) we need to regress against . As such, we need to calculate for each observation in the data set. Since we assumed constant returns, we can calculate as : STORE Hval_150 WEEK oz_X oz_Y Price_X Price_Y MC_X MC_Y TVC_X TVC_Y 62 0.09001 101 13,032 2,088 0.025 0.028 0.021 0.022 268.910 46.862 62 62 0.09001 0.09001 102 103 3,384 2,088 3,960 19,296 0.028 0.030 0.030 0.028 0.023 0.025 0.025 0.022 77.824 52.714 97.566 433.069 62 … … 68 68 68 0.09001 … … 0.25259 0.25259 0.25259 104 … … 149 150 151 35,064 …. …. 2,160 2,376 3,168 576 … … 4,608 3,816 2,304 0.021 … … 0.030 0.030 0.028 0.030 … … 0.030 0.028 0.030 0.017 … … 0.025 0.025 0.023 0.025 … … 0.025 0.022 0.025 604.297 … … 54.532 58.752 72.857 14.191 … … 113.531 85.644 56.765 68 0.25259 152 2,880 432 0.030 0.039 0.025 0.031 71.215 13.559 We can “check” the constant returns assumption by inspecting a scatter plot of versus : 18...
View Full Document

Ask a homework question - tutors are online