STORABLE GOOD MARKET WITH INTERTEMPORAL COST VARIATIONS

• 成果类型: Article
• 署名作者: Antoniou, Fabio; Fiocco, Raffaele
• 署名单位: Athens University of Economics & Business; University of Bergamo
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12596
• 发表日期: 2023
• 页码: 361-385
• 关键词: rate pass-through; price-discrimination; monopoly; demand; sales; inflation; storability; COMPETITION; DYNAMICS; CHOICE

摘要

We investigate a firm's dynamic pricing policy in a storable good market where the cost of production varies over time. In anticipation of a cost increase, the firm selects its prices to affect consumer storage. Price dynamics hinge upon the curvature of demand and the magnitude of the consumer storage cost. When demand is not too convex, the consumers' reluctance to store leads the firm to reduce prices to stimulate consumer storage. This shapes the firm's cost pass-through and the price commitment effects. Our analysis provides a novel explanation for the well-documented puzzling patterns of incomplete and negative cost pass-through.