What does "RV" mean?
Table of Contents
RV model selection is a method used to choose the best models for studying how companies behave in competitive markets. This process helps researchers to understand how firms set prices and interact with each other.
Importance of Strong Instruments
In this context, "instruments" are tools or data points that help researchers make better decisions about their models. Strong instruments provide reliable information, while weak instruments do not. Using strong instruments can lead to more accurate conclusions about how firms set their prices in the market.
Testing Firm Behavior
Studying firm behavior involves examining how companies compete and make decisions. By testing different models and using strong instruments, researchers can gain insights into which factors influence pricing strategies and overall market behavior.