The introduction of new products is an important method of competition in many markets. Towards understanding its … impact on competition and welfare, this paper estimates the effects of Crystal Pepsi being introduced by PepsiCo. Estimating … prices of existing products from increased competition, and the effect of having additional product variety. I find that …

maintained hypothesis of competition, or agreement, in quantity modeling. A major contribution of this paper is modeling pass …-through for a differentiated products market under the maintained hypothesis of price competition or price agreement. We estimate … simulation and related consumer welfare analysis under different regimes of competition. …