The authors demonstrate how to estimate a model of oligopoly pricing when products are multidimensionally differentiated. They provide an empirical counterpart to recent theoretical work on product differentiation. Using specifications informed by economic theory, the authors estimate price-cost...

As international economic integration has progressed, policy makers have started to ponder the possible conflicts arising from nationally pursued competition policies in more unified goods markets. An idea underlying much of this discussion is the notion that international trade liberalisation,...

The authors measure the responsiveness of returns to capital invested in six U.S. industries to shocks to the prices of competing import goods. Unanticipated, positive shocks to import prices cause higher than normal stock-market returns in all six industries. The magnitudes of these responses...