On large market asymptotics for spatial price competition models
Otsu, T.
& Sunada, K.
(2024).
On large market asymptotics for spatial price competition models.
Economics Letters,
234,
https://doi.org/10.1016/j.econlet.2023.111468
& Sunada, K.
(2024).
On large market asymptotics for spatial price competition models.
Economics Letters,
234,
https://doi.org/10.1016/j.econlet.2023.111468
In spatial price competition models, demand factors have correlation with prices through the markup so that their identification power decreases as the number of product grows. Asymptotic results indicate lack of consistency of the estimator due to weak instruments.
