Abstract By using Weyl and Fabinger’s (2013) conduct parameter approach, this note extends Hong and Li’s (2017) model of vertical structure to include downstream and upstream competition, and thereby generalizes… Click to show full abstract
Abstract By using Weyl and Fabinger’s (2013) conduct parameter approach, this note extends Hong and Li’s (2017) model of vertical structure to include downstream and upstream competition, and thereby generalizes the formula for cost pass-through elasticity. Three channels are identified through which downstream and upstream competition affect the cost pass-through elasticity, and it is argued that competition generally has an ambiguous effect.
               
Click one of the above tabs to view related content.