Question
As a manager in a new product market, you are interested in whether or not your competitors actually produce a close substitute for your product.
As a manager in a new product market, you are interested in whether or not your competitors actually produce a close substitute for your product. Your analytics team has carefully collected data on prices and quantities for your product, as well as market-level prices and quantities across many different geographical regions. The data are contained in the file called 007-23./ (the first tab has data on your firm and the second tab has market-level data). Using these data, does it appear your product has many close substitutes? (Hint. Consider how to get an estimate of the Rothschild index.)
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