TOPICS IN GRADUATE INDUSTRIAL ORGANIZATION
Department of Economics
Keio University, Tokyo, Fall 2009


Eugenio J. Miravete - University of Texas at Austin and CEPR.

Office hours: By appointment.

This mini-course will offer an introduction to empirical models of dynamic oligopoly. In total, we will cover five (sometimes very heavy) papers some of which are representative of where the frontier of IO lays today.

READINGS

DYNAMIC OLIGOPOLY MODELS

General References:

• Ackerberg, D., L. Benkard, S. Berry and A. Pakes (2006), "Econometric Tools for Analyzing Market Outcomes," Handbook of Econometrics, Vol. 6. North-Holland.

• Aguirregabiria, V., and P. Mira (2007), "Dynamic Discrete Choice Structural Models: A Survey,'' Journal of Econometrics, forthcoming.

• Doraszelski, U., and A. Pakes (2006), "A Framework for Applied Dynamic Analysis in Industrial Organization," Handbook of Industrial Organization, Vol. 3. North-Holland.

• Miller, R. (1997), "Estimating Models of Dynamic Optimization with Microeconomic Data," Handbook of Applied Econometrics: Microeconomics, Blackwell.

• Pakes, A. (1994), "Dynamic Structural Models: Problems and Prospects," Advances in Econometrics, Sixth World Congress, Cambridge.

• Rust, j. (1994), "Estimation of Dynamic Structural Models: Problems and Prospects - Discrete Decision Processes," Advances in Econometrics, Sixth World Congress, Cambridge.
  

Topic: Single Agent Methods. (Nov. 18, 9:00-10:30 and 10:45-12:15)

• Aguirregabiria, V., and P. Mira (2002): "Swapping the Nested Fixed Point Algorithm: A Class of Estimators for Discrete Markov Decision Models," Econometrica, 70, 1519-1543.

• Aguirregabiria, V. (1999): "The Dynamics of Markups and Inventories in Retailing Firms," Review of Economic Studies, 55, 275-308.

• Eckstein, Z. and K. Wolpin (1989), "The Specification and Estimation of Dynamic Stochastic Discrete Choice Models," Journal of Human Resources, 24, pp. 562-598.

• Hendel, I., and A. Nevo (2006), "Measuring the Implications of Sales and Consumer Stockpiling Behavior,'' Econometrica, 74, 1637-1673.

• Hotz, J., and R. Miller (1993), "Conditional Choice Probabilities and the Estimation of Dynamic Models,'' Review of Economic Studies, 60, 497-529.

• Rust, J. (1987): "Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher," Econometrica, 55, 999-1033.

• Pakes, A. (1986), "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, 54, 755-784.
  

Topic: Multi-Agent Models. (Dec. 1, 2:45-4:15 and 4:30-6:00) & (Dec. 4, 2:45-4:15 and 4:30-6:00)

• Aguirregabiria, V., and P. Mira (2007): "Sequential Estimation of Dynamic Discrete Games," Econometrica, 75, 1-53.

• Bajari, P., C. L. Benkard, and J. Levin (2007), “Estimating Dynamic Models of Imperfect Competition”, Econometrica, 75, 1331-70.

• Benkard, L. (2000), "Learning and Forgetting: The Dynamics of Aircraft Production,'' American Economic Review, 90(4), pp. 1034-1054.

• Collard-Wexler, A. (2005): “Demand Fluctuations and Plant Turnover in the Ready-Mix Concrete Industry,” mimeo, New York University.

• Ericson, R. and A. Pakes (1995): "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, 62, 53-82.

• Pakes, A., M. Ostrovsky, and S. Berry (2007): "Simple Estimators for the Parameters of Discrete Games (with Entry/Exit Examples)," RAND Journal of Economics, 38, 373-399.

• Pesendorfer, M., and P. Schmit-Dengler (2008), "Least Squares Estimators for Dynamic Games," Review of Economic Studies, 75, 901-928.