Measurement of Market Power Using Trademark Data: models, limitations and applications

ABSTRACT This paper analyzes the main models used to measure market power by means of brand data and verifies the advantages of the model developed by Cotterill, Franklin and Ma over the others. This is a very flexible model which can be used to any conjectural assumptions and allows the measurement of both unilateral and collusive market power. Several ways of application are suggested, and very promising perspectives are recognized for this type of study.