Economics, Econometrics and Finance
3 years ago

New demand functions reveal market power and regulatory impacts on consumers.

SSRN Electronic Journal
Shape Restrictions for Structural Demand Estimation: Beyond the ARUM
Julien Monardo

Paper Summary

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The article introduces new ways to estimate demand functions in economics. By studying how consumers behave, the researchers found rules that these functions must follow. They discovered that these functions can be used to analyze market power, mergers, and changes in taxes and trade policies.