Integrating the Structural Auction Approach and Traditional Measures of Market Power



Table 4. Nonlinear Two-Stage Least Squares Estimates of the NEIO Model

Parameter

Symbol

Estimate

Standard error

p-value

Industry conjectural variation

Θ

-0.94

0.19

0.0004

Processor’s pricing equation
intercept

a0

-4.76

2.31

0.0633

Coefficient for packer’s marginal
cost

a1

13.06

34.04

0.7085

Price markdown

2.7

36



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