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Market Structure, Price Pass-Through and Welfare with Differentiated Products

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  • Donghun Kim

Abstract

There is considerable literature on price pass-through modeling. This literature has focused on pass-through of cost shocks for homogenous products. To get results with the homogenous products case, empirical implementation has required the maintained hypothesis of competition, or agreement, in quantity modeling. A major contribution of this paper is modeling pass-through for a differentiated products market under the maintained hypothesis of price competition or price agreement. We estimate a mixed logit model for U.S processed cheese market using unbalanced panel data and implement a price pass through simulation and related consumer welfare analysis under different regimes of competition.

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  • Donghun Kim, 2004. "Market Structure, Price Pass-Through and Welfare with Differentiated Products," Food Marketing Policy Center Research Reports 080, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:fpcrep:080
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