EconPapers    
Economics at your fingertips  
 

Cost Pass-Through in the Swedish Coffee Market

Dick Durevall ()
Additional contact information
Dick Durevall: Department of Economics, Postal: School of Business, Economics and Law at University of Gothenburg, Box 640, Gothenburg, Sweden and HUI Research, 103 29 Stockholm, Sweden

No 120, HUI Working Papers from HUI Research

Abstract: Cost pass-through to retail prices shows how changes in marginal costs are allocated between producers and consumers, and it is therefore closely related to market structure and competition. This paper uses Swedish data on coffee products at the barcode level to evaluate pass-through from the cost of green coffee beans, the main marginal cost, to the retail price of roasted and ground coffee. First long-run cost pass-through is estimated for each product, and then regression is used to analyse how pass-through varies across market shares, retailer-owned brands and other product characteristics. A general result is that pass-through is roughly complete for products with large market shares, while those with small market shares have low pass-through rates. There is no evidence that retailer-owned brands have higher pass-through than brand-name products with similar market shares, which would be the case if retailer-owned brands avoided double marginalization through vertical integration. Thus, although there is not perfect competition in the Swedish coffee market, a large part of it appears to be highly competitive.

Keywords: Coffee market; Market power; Pass-through; Market shares (search for similar items in EconPapers)
JEL-codes: L11 L13 L89 (search for similar items in EconPapers)
Date: 2017-03-20
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.hui.se/BinaryLoader.axd?OwnerID=3a57705 ... .pdf&Attachment=True (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:huiwps:0120

Access Statistics for this paper

More papers in HUI Working Papers from HUI Research HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Helena Nilsson ().

 
Page updated 2018-09-23
Handle: RePEc:hhs:huiwps:0120