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Testing price taking behavior
Journal of Econometrics , 1979, 9(3), pp.283-294.
Abstract: The purpose of this paper is to present an empirically implementable technique for the analysis of non-competitive behavior in production. We provide a statistical test for the price taking behavior hypothesis which can be used to distinguish among different market structures. We apply this approach to the U.S. crude petroleum and natural gas industry and find that the price taking behavior hypothesis is not appropriate for this industry.
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