Market Structure and Cost Pass-Through in Retail

• 成果类型: Article
• 署名作者: Hong, Gee Hee; Li, Nicholas
• 署名单位: International Monetary Fund; University of Toronto
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00560
• 发表日期: 2017-03
• 页码: 151-166
• 关键词: intrafirm trade prices; gasoline; success; brands; POWER

摘要

We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three vertical structures: national brands, private label goods not manufactured by the retailer, and private label goods manufactured by the retailer. Our approach circumvents issues associated with internal firm prices and demonstrates that accounting for horizontal market structure is important for measuring the effects of vertical integration and reduced double marginalization on pass-through.