We estimate the effects of new brands on market competition and consumer welfare in the U.S. processed cheese market. We find that an observed increase in consumer welfare was attributable mainly to an increase in the number of brands in the sample market, while the price effect, which measures...

The influential Scherer and Ross text (1990, p. 411) states that the ?main question? in empirical industrial organization in the latter part of the twentieth century is Bain?s (1951) ?collusion? or ?agreement? hypothesis versus Demsetz?s (1973) ?superior firm? hypothesis. Prior to the Federal...

There is considerable literature on price pass-through modeling. This literature has focused on pass-through of cost shocks for homogenous products. To get results with the homogenous products case, empirical implementation has required the maintained hypothesis of competition, or agreement, in...