This paper investigates the consequences of ignoring price heterogeneity on the estimation of markups using micro-data. I show that ignoring output price heterogeneity yields markup estimates severely biased towards one regardless of competitiveness levels. To do so, I set up an econometric...

The main objective of this research is to discuss and extend the existing literature that is concerned with the estimation of demand and supply parameters to determine unobserved prices, quantities, quality and marginal costs at the firm-level using data sets that reports only revenue and cost...

This paper develops a methodology to uncover consumer preferences from a discrete-choice demand model of product differentiation using plant-level data. When prices and quantities are observed, the appropriate strategy for estimating such model is well developed. However, most plant-level data...