Market Structure, Price Pass-Through and Welfare with Differentiated Products

There is considerable literature on price pass-through modeling. This literature has focused on pass-through of cost shocks for homogenous products. To get results with the homogenous products case, empirical implementation has required the maintained hypothesis of competition, or agreement, in quantity modeling. A major contribution of this paper is modeling pass-through for a differentiated products market under the maintained hypothesis of price competition or price agreement. We estimate a mixed logit model for U.S processed cheese market using unbalanced panel data and implement a price pass through simulation and related consumer welfare analysis under different regimes of competition.


Issue Date:
2004
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/25157
Total Pages:
24
Series Statement:
Research Report No. 80




 Record created 2017-04-01, last modified 2017-08-24

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