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

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  • Kim, Donghun

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.

Suggested Citation

  • Kim, Donghun, 2004. "Market Structure, Price Pass-Through and Welfare with Differentiated Products," Research Reports 25157, University of Connecticut, Food Marketing Policy Center.
  • Handle: RePEc:ags:uconnr:25157
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    References listed on IDEAS

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