This assignment has three sections. Each section is self-contained, self-explanatory, and an assessment item in its own right.
statistics
Description
Instructions:
This assignment has three sections. Each section is self-contained, self-explanatory, and an assessment item in its own right. Each group must submit the assignment as a typed PDF document. Scanned copies of hand-workings are not allowed (submitting which will entail a 60% penalty). Each member of a group will share the exact same grade. Your answer documents must have the names of all the group members and the email address of the group leader who will convey your grades to you.
Section 1 – Microeconometrics (1 question, 5 points)
1. Is it possible to consistently estimate the conduct parameter λ in the model of Bresnahan
(1982) when the market of interest is characterized by a constant marginal cost curve?
Explain your answer carefully.
Section 2 – More microeconometrics (1 question, 10 points) 2.
Suppose you wanted to estimate valuation (V) using the method of moments on the
following data with another bargaining protocol (other than Nash), such that E(V|Y, G) = a +
bY + cG
