eprintid: 2535
rev_number: 16
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/00/25/35
datestamp: 2012-01-18 05:55:31
lastmod: 2023-08-30 13:34:04
status_changed: 2016-12-13 10:52:49
type: article
metadata_visibility: show
creators_name: Gasmi, Farid
creators_name: Laffont, Jean-Jacques
creators_name: Vuong, Quang H.
creators_idrefppn: 069829721
creators_idrefppn: 026959836
creators_idrefppn: 177855363
title: Econometric Analysis of Collusive Behavior in a Soft Drink Market
ispublished: pub
subjects: subjects_ECO
abstract: This paper proposes an empirical methodology for studying various (implicit or explicit) collusive behaviors on two strategic variables, which are price and advertising, in a differentiated market dominated by a duopoly. In addition to Nash or Stackelberg behaviors, we consider collusion on both variables, collusion on one variable and competition on the other, etc. Using data on the Coca-Cola and Pepsi-Cola markets from 1968 to 1986, full information maximum likelihood estimation of cost and demand functions are obtained allowing for various collusive behaviors. The collusive hypothesis is not rejected, and the best form of collusive behavior is selected via nonnested testing procedures. Using the best model, Lerner indices are computed for both duopolists to provide summary measures of market power. Finally, our approach is contrasted with the conjectural variation approach and is shown to give superior results.
date: 1992
date_type: published
id_number: 10.1111/j.1430-9134.1992.00277.x
official_url: http://tse-fr.eu/pub/765
faculty: tse
divisions: tse
language: en
has_fulltext: FALSE
view_date_year: 1992
full_text_status: none
publication: Journal of Economics and Management Strategy
volume: 1
number: 2
pagerange: 277-311
refereed: TRUE
issn: 1058-6407
oai_identifier: oai:tse-fr.eu:765
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citation:   Gasmi, Farid <https://www.idref.fr/069829721>, Laffont, Jean-Jacques <https://www.idref.fr/026959836> and Vuong, Quang H. <https://www.idref.fr/177855363>  (1992) Econometric Analysis of Collusive Behavior in a Soft Drink Market.    Journal of Economics and Management Strategy, 1 (2).  pp. 277-311.