We compare heteroskedasticity-robust inference methods with a large-scale Monte Carlo study based on regressions from 155 reproduction packages of leading economic journals. The results confirm established wisdom and uncover new insights. Among well established methods HC2 standard errors with...

Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e. g. due to market entry of new firms. We derive a consistent demand system to analyze such situations.