Spatial Price Competition: A Semiparametric Approach
提出一种半参数估计方法，用于分析差异化产品在有限市场中的价格竞争模式，并应用于美国汽油批发市场，发现竞争高度本地化。
We investigate the nature of price competition among firms that produce differentiated products and compete in markets that are limited in extent. We propose an instrumental variables series estimator for the matrix of cross price response coefficients, demonstrate that our estimator is consistent, and derive its asymptotic distribution. Our semiparametric approach allows us to discriminate among models of global competition, in which all products compete with all others, and local competition, in which products compete only with their neighbors. We apply our semiparametric estimator to data from U.S. wholesale gasoline markets and find that, in this market, competition is highly localized.