NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Distance, Demand, and Oligopoly Pricing

Robert C. Feenstra, James A. Levinsohn

NBER Working Paper No. 3076
Issued in August 1989
NBER Program(s):ITI, IFM

We demonstrate how to estimate a model of product demand and oligopoly pricing when products are multi-dimensionally differentiated. We provide an empirical counterpart to recent theoretical work on product differentiation. Using specifications informed by economic theory, we simultaneously estimate a demand system and price-cost margins for products differentiated in many dimensions.

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Document Object Identifier (DOI): 10.3386/w3076

Published: "Estimating Markups and Market Conduct with Multidimensional Product Attributes," Review of Economic Studies, vol. 62, pp 19-52, 1995.

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