In this paper we provide a method to separate the markup from product differentiation from other sources of market power, i.e. collusive behavior or market intransparency, based on the estimation of a single reduced form equation. We apply this method to a sample of 118 German breweries, since...

We decompose aggregate industry labor productivity growth into seven distinct components: input deepening, technical change, technical efficiency, scale effect, between-firm reallocation, effects from exits and entry. The first four components measure the productivity growth within a firm. The...

The beer market in Germany may be described as a monopolistic competition with many breweries supplying a very large variety of different beer styles and brands. Advertising is one means of differentiating a product and increasing prices over marginal costs. Based on production data obtained...

This paper builds on the work of BUSCHENA and GRAY (1999) to look at the effects of mergers in the North American malting industry as ten firms in two separated markets merged into four firms in an integrated market. We explore the sensitivity of our results to the assumption of market power. We...

In this paper, we attempt to identify the major groups of decision making units (dairy farms) contributing to the aggregate efficiency change. We also suggest identifying influential peers in order to gain more insights into possible development strategies within a sector. The empirical...

We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing...

This paper begins with the observation that the constrained maximisation central to model estimation and hypothesis testing may be interpreted as a kind of profit maximisation. The output of estimation is a model that maximises some measure of model fit, subject to costs that may be interpreted...