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Single-product versus uniform SSNIPs

Daljord, Øystein Børnes; Sørgard, Lars
Working paper
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dp2010-3.pdf (290.1Kb)
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http://hdl.handle.net/11250/163200
Utgivelsesdato
2010-01
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  • Discussion papers (SAM) [579]
Sammendrag
It is common to apply a SSNIP test with a uniform price increase on all products in the

candidate market. We show that in situations with asymmetries – for example one product

having a limited sale – a uniform SSNIP test can suggest that the relevant market should

include more products even though it could be profitable to increase the price of only one product in the candidate market. Our results are illustrated with some findings from a survey in a local grocery market.
Utgiver
Norwegian School of Economics and Business Administration. Department of Economics
Serie
Discussion paper
2010:3

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