期刊名称：Journal of Agricultural and Resource Economics
印刷版ISSN：1068-5502
出版年度：2014
卷号：39
期号：2
页码：188-200
出版社：WAEA
摘要：The endogeneity of retail markups arises due to the correlation between the markups andunobserved costs in the retail pricing equation. This correlation may be a result of unobservedproduct quality affecting both price and markups. Despite inconsistency resulting from markupendogeneity, it has long been ignored in the equilibrium analysis of retail behavior. We accountfor retail markup endogeneity using a control-function approach in which controls are derivedfrom empirical evidence in the marketing literature. Furthermore, we adopt three test proceduresto evaluate this endogeneity and apply our method in an econometric analysis of retail marketbehavior in the marketing of yogurt in the United States. The results provide strong statisticalevidence for the fact that markup endogeneity has been overlooked, resulting in upward bias inretail markups.
关键词：benefit function; conjectural variation; control function; retail conduct; retail markup;endogeneity
