Theory and Empirical Work on Imperfectly Competitive Markets

64 Pages Posted: 22 Jun 2008 Last revised: 30 Jul 2010

See all articles by Ariel Pakes

Ariel Pakes

National Bureau of Economic Research (NBER); Harvard University - Department of Economics

Date Written: June 2008

Abstract

This paper reviews recent methodological developments in the empirical analysis of imperfectly competitive markets highlighting outstanding problems. Some of these problems are econometric; e.g. the need for a deeper understanding of the small sample properties of our estimators. Most of the other problems relate to issues which have been a central part of ongoing research programs in economic theory for some time. We consider ways in which applied work can cope with these problems and, in so doing, also inform theory. The use of estimators based on moment inequalities opens up several possibilities in this regard and a detailed discussion of the assumptions used to rationalize these estimators is provided. An example, the analysis of contracts in buyer-seller networks, is used to highlight these points.

Suggested Citation

Pakes, Ariel, Theory and Empirical Work on Imperfectly Competitive Markets (June 2008). NBER Working Paper No. w14117. Available at SSRN: https://ssrn.com/abstract=1149363

Ariel Pakes (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Harvard University - Department of Economics ( email )

Littauer Center
Room 117
Cambridge, MA 02138
United States
617-495-5320 (Phone)
617-495-8570 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
33
Abstract Views
565
PlumX Metrics