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Difference-in-Difference Analysis: A "Natural Experiment"

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econworks
Oct 01, 2025
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Difference-in-difference analysis examines competitive effects and is commonly known as a "natural experiment." This method compares prices in a market where a competitive action, like a merger, has taken place with those in a market without such an action. To effectively compare prices, we analyze the differences between markets and the changes before and after the competitive action, incorporating both types of differences.

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