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Own And Cross Pass-Trough In A Structural Framework

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  • Hovhannisyan, Vardges
  • Bozic, Marin
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    Abstract

    The article offers measures of own and cross cost pass-through in a structural framework. Unlike the traditional reduced-form analysis used in the previous literature, our approach is applicable in situations where firm marginal cost data are unobserved. The empirical value of the model is illustrated in an application to retail pass-through for national and store brand yogurt using an inverse demand derived from the economic theory. We find that ignoring cross pass-through between the brands biases own pass-through estimates.

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    File URL: http://purl.umn.edu/150993
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150993.

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    Date of creation: 2013
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    Handle: RePEc:ags:aaea13:150993

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    Related research

    Keywords: Pass-through; retail conduct; benefit function; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; Marketing; L10; M31;

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