Is the Consumer Sector Competitive in the U.K.? A Test Using Household-Level Demand Elasticities and Firm-Level Price Equations
利用英国家庭数据估计非耐用品需求弹性，再结合企业数据检验完全竞争假说，结果拒绝完全竞争，支持合谋降低竞争、提高利润的观点。
This article tests the hypothesis of perfect competition in the consumer nondurables sector of the U.K. economy. First, it uses household-level data to estimate time-varying price elasticities of demand for disaggregated commodity groups. U.S. product prices are used as instruments for U.K. prices in the demand equation. Then it matches the product definitions to the Standard Industry Classification and uses firm-level data, combined with the estimated elasticities, to estimate a price model of firms operating in different industries. Household characteristics are used as instruments for the demand effects in the firms’ supply equation. The results reject perfect competition and appear to be consistent with the argument that less competition increases profits through collusion.