Endogeneity Problems in Empirical Analyses of Antitrust and Competition

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Economic experts in mergers and other antitrust matters use a variety of tools to disentangle correlation from causation and often disagree on the appropriate way to reliably identify true causality based on the available data.

In this chapter, the authors explain the concept and consequences of endogeneity, as well as possible solutions, through a series of examples relevant to antitrust in non-technical and intuitive terms.


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