Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing

Sofia Villas-Boas and Rebecca Hellerstein

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: This note outlines conditions under which we can identify a vertical supply model of multiple retailers’ and manufacturers’ oligopoly-pricing behavior. This is an important question particularly when the researcher believes, contrary to the traditional assumption followed in the empirical literature, that retailers may not be neutral pass-through intermediaries. We show that a data-set of an industry’s product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailers’ and manufacturers’ oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.

Keywords: Identification; Vertical relationships; Oligopoly models of multiple manufacturers and retailers (search for similar items in EconPapers)
Date: 2004-10-01
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Identification of supply models of retailer and manufacturer oligopoly pricing (2006)
Working Paper: Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing (2004)
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