Measurement of Market Power Using Trademark Data: models, limitations and applications
Abstract
This paper analyzes the main models used to measure market power by means
of brand data and verifies the advantages of the model developed by Cotterill, Franklin
and Ma over the others. This is a very flexible model which can be used to any conjectural
assumptions and allows the measurement of both unilateral and collusive market power.
Several ways of application are suggested, and very promising perspectives are recognized
for this type of study.
JEL Classification: D43; L13; L25.
Keywords: Market power competition elasticity estimation