It seems that you assume that if one producer sells its product for slightly less than its competition, then it will get all the customers, à la Bertrand competition. But if it is not the case, and lowering your price…
I do not think it does overlook that research: those papers generally assume that once those things are controlled for, the remaining variation is as good as random and thus we indeed recover the causal effect of X on…
It seems that you assume that if one producer sells its product for slightly less than its competition, then it will get all the customers, à la Bertrand competition. But if it is not the case, and lowering your price…
I do not think it does overlook that research: those papers generally assume that once those things are controlled for, the remaining variation is as good as random and thus we indeed recover the causal effect of X on…