Market Power and Joint Dominance in U.K. Brewing
Year: 2004
Type: article
Abstract: Market power and joint dominance are examined in U.K. brewing. I assess unilateral and coordinated effects, where the latter is equated with joint dominance, and show how one can distinguish between the two econometrically. The application makes use of two demand equations: the nested logit of McFadden [1978a] and the distance‐metric of Pinkse, Slade, and Brett [2002] . The two equations yield very different predictions concerning elasticities and markups. Nevertheless, although there is evidence of market power using either demand model, that power is due entirely to unilateral effects. In other words, neither model uncovers evidence of coordinated effects (tacit collusion).
Source: Journal of Industrial Economics
Author: Margaret E. Slade
Institution: University of Warwick
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2089610985