Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/92886 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
ISER Discussion Paper No. 766
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
For 70 Japanese manufacturing industries, I test the simple Cournot hypothesis of proportionality between industry price-cost margin and Herfindahl index against the non-nested alternative that the industry price-cost margin remains constant in the face of varying Herfindahl index, as it would under a simple product differentiated Bertrand framework. I then test each of these against the alternative hybrid specification that nests both of them, and from the pairwise tests, compute likelihoods of each specification. The simple Cournot specification is the most likely for five of the industries, the simple Bertrand specification for 35, and the hybrid specification for 30.
JEL: 
L11
L13
L60
Document Type: 
Working Paper

Files in This Item:
File
Size
197.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.