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  • All HBS Web  (19)
    • News  (5)
    • Research  (5)
  • Faculty Publications  (4)

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  • All HBS Web  (19)
    • News  (5)
    • Research  (5)
  • Faculty Publications  (4)
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  • 26 Nov 2018
  • Working Paper Summaries

Demand Estimation in Models of Imperfect Competition

Keywords: by Alexander MacKay and Nathan H. Miller
  • 05 May 2022
  • Research & Ideas

Why Companies Raise Their Prices: Because They Can

much as they did." Instead, markups—the difference between prices charged at checkout and the marginal costs incurred by a company in order to make a product—climbed about 25 percent between 2006 View Details
Keywords: by Rachel Layne
  • February 2025
  • Article

Estimating Models of Supply and Demand: Instruments and Covariance Restrictions

By: Alexander MacKay and Nathan H. Miller
We consider the identification of empirical models of supply and demand with imperfect competition. We show that a restriction on the covariance between unobserved demand and cost shocks can resolve endogeneity and identify the price parameter. We demonstrate how to... View Details
Keywords: Demand Estimation; Identification; Endogeneity Bias; Covariance Restrictions; Ordinary Least Squares; Instrumental Variables; Price; Demand and Consumers; Competition
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MacKay, Alexander, and Nathan H. Miller. "Estimating Models of Supply and Demand: Instruments and Covariance Restrictions." American Economic Journal: Microeconomics 71, no. 1 (February 2025): 238–281. (Direct download.)
  • 2023
  • Working Paper

Rising Markups and the Role of Consumer Preferences

By: Hendrik Döpper, Alexander MacKay, Nathan H. Miller and Joel Stiebale
We characterize the evolution of markups for consumer products in the United States from 2006 to 2019. We use detailed data on prices and quantities for products in more than 100 distinct product categories to estimate demand systems with flexible... View Details
Keywords: Market Power; Markups; Demand Estimation; Consumer Products; Retailers; Product; Price; Demand and Consumers; Consumer Behavior
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Döpper, Hendrik, Alexander MacKay, Nathan H. Miller, and Joel Stiebale. "Rising Markups and the Role of Consumer Preferences." Harvard Business School Working Paper, No. 22-025, October 2021. (Revised March 2023. Direct download.)
  • 06 Nov 2018
  • First Look

New Research and Ideas, November 6, 2018

MacKay, Alexander, and Nathan H. Miller Abstract—We consider the identification and estimation of demand systems... View Details
Keywords: Dina Gerdeman
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