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
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Englisch
- Bibliographic citation
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Series: EAG Discussion Paper ; No. EAG 12-9
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Miller, Nathan H.
Remer, Marc
Sheu, Gloria
- Event
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Veröffentlichung
- (who)
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U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)
- (where)
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Washington, DC
- (when)
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2012
- Handle
- Last update
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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