Data and Code for: A Simple Method for Bounding the Elasticity of Growing Demand with Applications to the Analysis of Historic Antitrust Cases

This data archive contains Excel data and Stata and Excel code to produce all figures and tables of statistical results from the AEJ-Micro paper by Mullin and Snyder, "A Simple Method for Bounding the Elasticity of Growing Demand with Applications to the Analysis of Historic Antitrust Cases." <br><br>The archive also contains two Stata programs that other researchers can use in their own applications to estimate elasticity bounds according to the paper's method and compute Zelterman (1993) bootstrapped standard errors. The first program assumes linear demand and the second logit demand. <br>Mullin and Snyder's paper provides a simple method, requiring only minimal data, for bounding demand elasticities in growing, homogeneous-product markets. Since growing demand curves cannot cross, shifts in market equilibrium over time can be used to "funnel" the demand curve into a narrow region, bounding its slope. Our featured application assesses the antitrust remedy in the 1952 DuPont decision, ordering incumbents to license patents for commercial plastics. We bound the demand elasticity significantly below 1 in many post-remedy years, inconsistent with monopoly, supporting the remedy's effectiveness. A second application investigates whether the 1911 dissolution of American Tobacco fostered competition in the cigarette market.<br><br><br><br><br>