Thursday, February 26, 2009
Posted by D. Daniel Sokol
Øystein Daljord of the Norwegian School of Economics and Business Administration provides An Exact Arithmetic SSNIP Test for Asymmetric Products.
ABSTRACT: The standard application of critical loss analysis to delineate markets is shown to be incorrect when products are asymmetric. A simple delineating criterion is derived that accounts for asymmetries between products without imposing equilibrium conditions or any specific demand structure.