Market structure and cost pass-through in retail

Arbeitspapier

We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three different vertical structures: national brands, private label goods not manufactured by the retailer and private label goods manufactured by the retailer. Our findings emphasize that accounting for the interaction of vertical and horizontal structure is important in understanding how market structure affects pass-through, as a reduction in doublemarginalization can raise pass-through directly but can also reduce it indirectly by increasing market share.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Working Paper ; No. 2013-5

Classification and Topics

• Classification: Wirtschaft ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Price Level; Inflation; Deflation ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
• Subject: Inflation and prices ; Transmission of monetary policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hong, Gee Hee ; Li, Nicholas
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2013

Further information

• DOI: doi:10.34989/swp-2013-5
• Handle: http://hdl.handle.net/10419/80733
• Last update: 10.03.2025, 11:44 AM CET