This paper proposes a new way to empirically model netput functions. It argues for the flexibility and rationality of specifying netputs as a function of competitive prices, fixed inputs, and restricted profit. We call these implicit netput functions because they depend on restricted profit....

Economists who estimate demand or supply systems are often faced with the issue of whether to estimate with shares or quantities as the dependent variables. This paper reviews the implications of making the wrong choice in the context of normalized profit functions of competitive behavior. The...