In the Event That Your Treatment Variable Suffers from Perfect

question 20

Multiple Choice

In the event that your treatment variable suffers from perfect multicollinearity with one of your controls, a viable remedy is:

• A) drop the control variable.
• B) drop the treatment variable of interest.
• C) change the population to one, where the treatment and control are not exactly linearly related.
• D) use the within estimator.

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Definitions:

Bundling

The practice of selling multiple products or services together as one combined package, often at a discounted rate.

Vertical Contracts

Agreements between companies at different levels of the supply chain, such as a manufacturer and a retailer, to dictate terms of sale, purchase, or production.

Upstream Price Discrimination

A pricing strategy where producers charge different prices for the same product or service to different retailers or stages in the supply chain.

Arbitrage

The simultaneous purchase and sale of an asset in different markets to profit from unequal prices.