VARIETY PASS-THROUGH: AN EXAMINATION OF THE READY-TO-EAT BREAKFAST CEREAL MARKET

• 成果类型: Article
• 署名作者: Richards, Timothy J.; Hamilton, Stephen F.
• 署名单位: Arizona State University; Arizona State University-Tempe; California State University System; California Polytechnic State University San Luis Obispo
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00447
• 发表日期: 2015-03
• 页码: 166-179
• 关键词: product differentiation; exchange-rate; prices rise; demand; models; COSTS; magnitude; variables; retail; entry

摘要

We examine variety pass-through effects that occur when multiproduct retailers adjust the length of their product lines in response to changes in wholesale prices. Studying variety pass-through is essential to understanding how wholesale price changes transmit into retail prices when variety is endogenous. Using data from the ready-to-eat breakfast cereal category, we find that retailers jointly adjust retail prices and the length of their product lines in response to changes in wholesale prices. We show the importance of controlling for the endogeneity of retailers' product line decisions when calculating price pass-through rates.