An Exact Arithmetic SSNIP Test for Asymmetric Products

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.