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Economic Theory

, Volume 57, Issue 2, pp 253–277 | Cite as

A nonparametric analysis of multi-product oligopolies

  • Andrés Carvajal
  • Rahul Deb
  • James Fenske
  • John K.-H. Quah
Research Article

Abstract

We develop revealed preference tests for models of multi-product oligopoly, building on the work in Carvajal et al. (Econometrica 81(6):2351–2379, 2013). We analyze a Cournot model with multiple goods and show that it has testable restrictions when at least one good is produced by two or more firms. We also develop a revealed preference test for Bertrand oligopoly in a setting where each firm produces a single differentiated good, and these goods are potentially substitutes for each other. Our tests require qualitative assumptions on the shape of the demand curves and (in the Bertrand case) their evolution across observations, but they do not rely on the estimation of market demand.

Keywords

Cournot equilibrium Bertrand equilibrium Revealed preference Observable restrictions Product differentiation Supermodular games 

JEL Classification

C12 C14 C60 C72 D22 D43 L13 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Andrés Carvajal
    • 1
  • Rahul Deb
    • 2
  • James Fenske
    • 3
  • John K.-H. Quah
    • 3
  1. 1.Economics DepartmentUniversity of Western OntarioLondonCanada
  2. 2.Economics DepartmentUniversity of TorontoTorontoCanada
  3. 3.Economics DepartmentUniversity of OxfordOxfordUK

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