Working Paper: CEPR ID: DP12074
Authors: Victor Aguirregabiria; Margaret Slade
Abstract: We review important developments in Empirical Industrial Organization (IO) over the last three decades. The paper is organized around six topics: collusion, demand, productivity, industry dynamics, inter-firm contracts, and auctions. We present models that are workhorses in empirical IO, and describe applications. For each topic, we discuss at least one empirical application using Canadian data.
Keywords: Empirical IO; Collusion; Demand for differentiated products; Production functions; Dynamic structural models; Interfirm contracts; Empirical auction models
JEL Codes: C57; L10; L20; L30; L40; L50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| BLP demand model (J23) | relationship between product characteristics and consumer choices (L15) |
| closer substitutes in characteristic space (D11) | higher cross-price elasticities (D11) |
| multimarket contact (L14) | tacit collusion in differentiated product markets (L13) |
| increased contact among firms (L14) | higher prices and coordinated behavior (D43) |
| reallocation of inputs among firms (F16) | productivity growth (O49) |