This is a two part essay both 750 words (roughly 5 references for each) I have slides from lectures for both questions as well as sample essays provided which I’ll add after payment. The questions are as followed: 1. Does multimarket contact hinder or facilitate collusion? How do firms’ incentives to collude differ depending on whether collusion is at the intensive or at the extensive margin? 2. Suppose you have data containing market shares, prices, marginal costs, and relevant product characteristics for a given market. Describe how you would use the data to determine if any of the firms in the market are likely to be colluding by fixing prices. To do so, follow these steps: i. Describe how you would use the data to estimate a demand model. ii. Explain how the estimated demand model can shed light on collusion in the data. iii. Discuss potential issues or limitations of your approach.
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