Does competition increase pass‐through?
In recent years, the literature has seen a surge of interest in pass‐through as an economic tool. At the same time, widespread concerns have emerged about the rising market power of firms. How does competition affect pass‐through? A standard intuition is that more competition makes prices more cost‐...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 55; no. 1; pp. 140 - 166 |
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| Formato: | Artículo |
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Wiley-Blackwell
Mar2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=175721506&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 175721506 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Mar2024 vid: 55 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 175721506 10.1111/1756-2171.12461 ppf: 140 ppct: 26 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 414KB tig: atl: Does competition increase pass‐through? aug: au: Ritz, Robert A affil: Judge Business School, University of Cambridge su: Environmental regulations Prices Intuition Antitrust law Direct costing Market power sug: subj: Environmental regulations Prices Intuition Administration of Air and Water Resource and Solid Waste Management Programs Antitrust law Direct costing Market power ab: In recent years, the literature has seen a surge of interest in pass‐through as an economic tool. At the same time, widespread concerns have emerged about the rising market power of firms. How does competition affect pass‐through? A standard intuition is that more competition makes prices more cost‐reflective and hence raises the rate of cost pass‐through. This article shows this conclusion is sensitive to the routine assumption that firms' marginal costs are constant. With modestly convex costs, market power can raise pass‐through (even when it lies below 1). These results have implications for antitrust policy, environmental regulation, and welfare analysis. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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