Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80733
Authors: 
Hong, Gee Hee
Li, Nicholas
Year of Publication: 
2013
Series/Report no.: 
Bank of Canada Working Paper 2013-5
Abstract: 
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.
Subjects: 
Inflation and prices
Transmission of monetary policy
JEL: 
E30
E31
L11
L16
Document Type: 
Working Paper

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