Arbeitspapier

Using Cost Pass-Through to Calibrate Demand

We demonstrate that cost pass-through can be used to inform demand calibration, potentially eliminating the need for data on margins, diversion, or both. We derive the relationship between cost pass-through and consumer demand using a general oligopoly model of Nash-Bertrand competition and develop specic results for four demand systems: linear demand, logit demand, the Almost Ideal Demand System (AIDS), and log-linear demand. The methods we propose may be useful to researchers and antitrust authorities when reliable measures of margins or diversion are unavailable.

Language
Englisch

Bibliographic citation
Series: EAG Discussion Paper ; No. EAG 12-9

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Miller, Nathan H.
Remer, Marc
Sheu, Gloria
Event
Veröffentlichung
(who)
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)
(where)
Washington, DC
(when)
2012

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Miller, Nathan H.
  • Remer, Marc
  • Sheu, Gloria
  • U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)

Time of origin

  • 2012

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