Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202402
Authors: 
Miller, Nathan H.
Remer, Marc
Sheu, Gloria
Year of Publication: 
2012
Series/Report no.: 
EAG Discussion Paper 12-9
Abstract: 
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.
Document Type: 
Working Paper

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