MINICOURSE ON

“THE ECONOMETRICS OF DYNAMIC GAMES OF OLIGOPOLY COMPETITION”

 

University of Helsinki

Finnish Doctoral Programme in Economics (FDPE)

August 19-23, 2013

 

Victor Aguirregabiria

E-mail: victor.aguirregabiria@utoronto.ca

Web: http://individual.utoronto.ca/vaguirre

 

 

·       SYLLABUS

 

·       TAKE HOME EXAM (Due on Monday, August 26, 2013)

 

·       CLASS NOTES AND SLIDES 

 

1.     Dynamic Structural Models of Industrial Organization: General Ideas

 

v Lectures 1 and 2:           Introduction to Empirical Models of Oligopoly Competition

 

v Lectures 3 and 4:           Introduction to Dynamic Structural Models

 

Readings:

Ø  Rust, J. (1992): "Do People Behave According to Bellman’s Principle of Optimality,” manuscript.

 

Ø  Rust, J. (2006): "Dynamic Programming,” New Palgrave Dictionary of Economics.

 

Ø  Aguirregabiria, Victor and Mira, Pedro (2010): “Dynamic Discrete Choice Structural Models: A Survey,” Journal of Econometrics, 156(1), 38-67.

 

2.     Single-Agent Models of Firm Investment Decisions

 

v Lectures 5 and 6:           Applications of Single-Agent Dynamic Structural Models

 

Readings:

Ø  Rust, J. (1987): "Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher," Econometrica, 55, 999-1033.

 

Ø  Aguirregabiria, V. (1999): "The Dynamics of Markups and Inventories in Retailing Firms," Review of Economic Studies, 66(2), 275-308.

 

Ø  Holmes, T. (2010): “Diffusion of Wal-Mart and Economies of Density,” Econometrica, 79, 253-302.

 

3.     Dynamic Games of Oligopoly Competition

 

v Lectures 7 and 8: Estimation of Dynamic Games

 

v Lectures 9 and 10: Applications of Dynamic Games of Oligopoly Competition

 

Readings:

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

 

Ø  Bajari, P., L. Benkard, and J. Levin (2007): “Estimating Dynamic Models of Imperfect Competition,” Econometrica, vol. 75, issue 5, pages 1331-1370.

 

Ø  Ryan, S. (2010): “The Costs of Environmental Regulation in a Concentrated Industry,” manuscript. MIT.

 

Ø  Sweeting, A. (2011): “Dynamic Product Repositioning in Differentiated Product Industries: The Effect of Fees for Musical Performance Rights on the Commercial Radio Industry,” manuscript

 

Ø  Collard-Wexler, A. (2010): “Demand Fluctuations in the Ready-Mix Concrete Industry,” manuscript

 

Ø  Aguirregabiria, V., and C-Y Ho (2010): “A Dynamic Oligopoly Game of the US Airline Industry: Estimation and Policy Experiments,” manuscript