Identification of supply models of retailer and manufacturer oligopoly pricing
AbstractThis note outlines conditions under which we can identify a vertical supply model of multiple retailersÃ¢â¬â¢ and manufacturersÃ¢â¬â¢ oligopoly-pricing behavior. This is an important question particularly when the researcher believes, contrary to the traditional assumption followed in the empirical literature, that retailers may not be neutral pass-through intermediaries. We show that a data-set of an industryÃ¢â¬â¢s product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailersÃ¢â¬â¢ and manufacturersÃ¢â¬â¢ oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 90 (2006)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Villas-Boas, Sofia B. & Hellerstein, Rebecca, 2004. "Identification of supply models of retailer and manufacturer oligopoly pricing," CUDARE Working Paper Series 0993, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Villas-Boas, Sofia & Hellerstein, Rebecca, 2004. "Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt92x5f4j3, Department of Agricultural & Resource Economics, UC Berkeley.
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