Estimation of Cost Effi ciency without Cost Data ∗
نویسندگان
چکیده
One of the advantages of conduct parameter games is that they enable estimation of market power without total cost data. In line with this, we develop a conduct parameter based model to estimate the firm specific “implied cost effi ciency”and conduct without using total cost data. We use our methodology to estimate the conducts and marginal cost effi ciencies of U.S. airlines.
منابع مشابه
Estimation of Cost Effi ciency without Cost Data
One of the advantages of estimating a conduct parameter game, compared with the Lerner index, is that the knowledge of cost shifters is suffi cient to get the “implied marginal cost”estimates. Stochastic frontier literature suffers from the same problem that it requires a detailed data set in order to estimate cost effi ciencies of the firms. This paper develops a model to estimate firm specifi...
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