The endogeneity of retail market power arises in the retail pricing equation due to the correlation between margins and unobserved cost components. Nevertheless, it has long been ignored in the equilibrium analysis of retail behavior. We address the issue via a control function approach in a new...

Price endogeneity has been ignored in previous analyses of food demand in China. We examine agricultural input price data from the China National Bureau of Statistics and use reduced-form price equations to account for price endogeneity in this setting. Applying our unique econometric approach...

Price endogeneity has been ignored in previous analyses of food demand in China. We exploit farm price data collected from the China National Bureau of Statistics to account for price endogeneity using reduced form price equations. Applying our unique econometric approach to the analysis of...

This article provides a structural framework for studying the market performance of various food industries. It revisits the benefit-function approach to modeling demand and extends its application to the empirical industrial-organization literature. We illustrate the empirical value of our...

The endogeneity of retail markups arises due to the correlation between the markups and unobserved costs in the retail pricing equation. This correlations may be a result unobserved product quality affecting both price and markups. Despite inconsistency resulting from markup endogeneity, it has...

ABSTRACT Superelasticity of demand offers a quantitative measure of demand curvature which is an important consideration in firm pricing decisions. We derive superelasticity analytic formulations for logit and random coefficient logit (RCL) demand models that can be used to shed light on firm...