Work

Market Structure and Cost Pass-Through in Retail

Year: 2016

Type: article

Abstract: We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three vertical structures: national brands, private label goods not manufactured by the retailer, and private label goods manufactured by the retailer. Our approach circumvents issues associated with internal firm prices and demonstrates that accounting for horizontal market structure is important for measuring the effects of vertical integration and reduced double marginalization on pass-through.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00560

Authors: Gee Hee Hong, Nicholas Li

Institutions: International Monetary Fund, University of Toronto

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2173129234

FWCI: 17.33

Cites: 53

Cited by: 85

Related to: 10