TY  - JOUR
AU  - Pakes,Ariel
TI  - Theory and Empirical Work on Imperfectly Competitive Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14117
PY  - 2008
Y2  - June 2008
UR  - http://www.nber.org/papers/w14117
L1  - http://www.nber.org/papers/w14117.pdf
N1  - Author contact info:
Ariel Pakes
Department of Economics
Harvard University
Littauer Room 117
Cambridge, MA 02138
Tel: 617/495-5320
Fax: 617/496-7352
E-Mail: apakes@fas.harvard.edu
AB  - This paper reviews recent methodological developments in the empirical analysis of imperfectly competitive markets highlighting outstanding problems. Some of these problems are econometric; e.g. the need for a deeper understanding of the small sample properties of our estimators. Most of the other problems relate to issues which have been a central part of ongoing research programs in economic theory for some time. We consider ways in which applied work can cope with these problems and, in so doing, also inform theory. The use of estimators based on moment inequalities opens up several possibilities in this regard and a detailed discussion of the assumptions used to rationalize these estimators is provided. An example, the analysis of contracts in buyer-seller networks, is used to highlight these points.
ER  -