search query: @author Cotterill, R.W. / total: 2
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| Author: | Kim, D. Cotterill, R.W. |
| Title: | Cost pass-through in differentiated product markets: the case of U.S. processed cheese |
| Journal: | Journal of Industrial Economics
2008 : MAR, VOL 56:1 p. 32-48 |
| Index terms: | demand analysis usa brands prices competition consumers |
| Freeterms: | cheese |
| Language: | eng |
| Abstract: | In this article a mixed logit model for demand in the U.S. processed cheese market is estimated. The estimates are used to determine pass-through rates of cost changes under different behavioral regimes. It is found that under collusion the pass-through rates for all brands fall between 21 % and 31 % while under Nash-Bertrand price competition, the range of pass-through rates is between 73 % and 103 %. The mixed logit model provides a more flexible framework for studying pass-through rates than the logit model since the curvature of the demand functions depends upon the empirical distribution of consumer types. |
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