Empirical Models of Firms and Industries

Abstract

We review important developments in empirical industrial organization (IO) over the last three decades. The paper is organized around six topics: collusion, demand, productivity, industry dynamics, interfirm contracts and auctions. We present models that are workhorses in empirical IO and describe applications. For each topic, we discuss at least one empirical application using Canadian data. Résumé. Modèles empiriques de firmes et d'industries.On passe en revue les développements importants en organisation industrielle (OI) empirique au cours des trois dernières décennies. Le texte est organisé autour de six enjeux: collusion, demande, productivité, dynamique industrielle, contrats inter-firmes, et enchères. On présente des modèles qui sont des chevaux de bataille dans l'OI empirique, et on décrit des applications. Pour chaque enjeu, on discute d'au moins une application empirique utilisant des données canadiennes.

The Potential Compensation Principle and Constant Marginal Utility of Income

“…This approach is recognised in the modern structural literature. A now-vast body of work, surveyed by Aguirregabiria and Slade (2017), estimates structural market models to examine various aspects of market performance. Although their focus is elsewhere, such studies produce estimates of the marginal utility of income.…”