Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing
This note outlines conditions under which we can identify a vertical supply model of multiple retailersâ€™ and manufacturersâ€™ 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 industryâ€™s product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailersâ€™ and manufacturersâ€™ oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.
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- Nevo, Aviv, 1998. "Identification of the oligopoly solution concept in a differentiated-products industry," Economics Letters, Elsevier, vol. 59(3), pages 391-395, June.
- Julie Holland Mortimer, 2002. "The Effects of Revenue-Sharing Contracts on Welfare in Vertically-Separated Markets: Evidence from the Video Rental Industry," Harvard Institute of Economic Research Working Papers 1964, Harvard - Institute of Economic Research.
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"Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data,"
NBER Working Papers
7981, National Bureau of Economic Research, Inc.
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- Peter E. Rossi & Judith A. Chevalier & Anil K. Kashyap, 2002. "Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data," Yale School of Management Working Papers ysm291, Yale School of Management.
- Robert C. Feenstra, 1987.
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NBER Working Papers
2453, National Bureau of Economic Research, Inc.
- Feenstra, Robert C., 1989. "Symmetric pass-through of tariffs and exchange rates under imperfect competition: An empirical test," Journal of International Economics, Elsevier, vol. 27(1-2), pages 25-45, August.
- K. Sudhir & Vrinda Kadiyali & Vithala R. Rao, 2001. "Structural Analysis of Manufacturer Pricing in the Presence of a Strategic Retailer," Yale School of Management Working Papers ysm229, Yale School of Management.
- Rebecca Hellerstein, 2006.
"A decomposition of the sources of incomplete cross-border transmission,"
250, Federal Reserve Bank of New York.
- Rebecca Hellerstein, 2005. "A Decomposition of the Sources of Incomplete Cross-Border Transmission," 2005 Meeting Papers 805, Society for Economic Dynamics.
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