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How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firms' price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the...
Persistent link: https://www.econbiz.de/10011446483
rich panel of manufacturing firms in Belgium, a small open economy. We find that union bargaining power is higher in …
Persistent link: https://www.econbiz.de/10013137344
How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firms' price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the...
Persistent link: https://www.econbiz.de/10012969177