Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145692
Authors: 
Romahn, André
Friberg, Richard
Year of Publication: 
2016
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Price-Setting Behavior of Firms G11-V3
Abstract: 
How does cost pass-through to prices depend on the set of products a multiproduct firm owns? Using a structural demand model for the Swedish beer market, we simulate equilibrium cost pass-through for varying counterfactual ownership patterns. We find that a firm with a larger number of products in its portfolio and a higher degree of substitutability among these products adopts a lower pass-through of costs. While the direction of results is robust, our simulations show that the muting effect on pass-through is limited when comparing pass-through by stand-alone firms to pass-through under the actual, moderately concentrated, market structure.
JEL: 
L11
L13
E31
Document Type: 
Conference Paper

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