Boone, Jan; Ours, Jan; Wiel, Henry - In: De Economist 161 (2013) 1, pp. 45-67
The price cost margin (PCM) is a popular way to measure competition. Although we know that this measure is not without problems, we actually do not know how often and under which conditions a change in PCM points in the wrong direction. We use a new competition measure, the profit elasticity,...