Price, Quality and Advertising Competition: An Econometric Investigation of the United Kingdom Car Market.

This paper seeks to explain the behaviour of an oligopolistic market, the United Kingdom market for cars, over the late 1950s and through the 1960s. Our primary concern is to explain market-share behaviour and thus establish the form of the demand function faced by the individual firm or by the separate divisions of such a firm. Given such information, we will be able to estimate the degree of monopoly in the industry by determining the mark-up of price over marginal cost--and, thereby, make some estimate of the size of the welfare loss associated with monopoly. [ABSTRACT FROM AUTHOR]