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- W2181639042 abstract "Recent empirical work documents that the pass-through of cost shocks to prices is very low, and delayed. Moreover, delayed pass-through mostly occur at the wholesale rather than at the retail level. To explain these facts, this paper develops a model of wholesalers-retailers relationships where incomplete pass-through arises endogenously. The model is based on two key assumptions with strong empirical support. First, both retailers and wholesalers invest resources to form new, long-term, business relationships. Second, once a business relationship is formed, the wholesale prices and the quantities of the intermediate good exchanged are set in a bilateral bargaining between wholesalers and retailers." @default.
- W2181639042 created "2016-06-24" @default.
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- W2181639042 date "2010-01-01" @default.
- W2181639042 modified "2023-09-27" @default.
- W2181639042 title "Incomplete Pass-Through in a Model of Retailers - Wholesalers Relationships" @default.
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