ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Unequal Exchange of Errors A Reply

librium ones, our estimates contain a significant bias. Somewhat tricks- is the case of partial control. If the actual open market price is above the equilibrium open market price under partial control, the weighted average price pt would be above its equilibrium value; in this case ours will be an overestimate of the production cost of protection with partial control but closer to the production cost of protection alone. In the opposite case, the direction of the bias is reversed.

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