Show simple item record

dc.contributor.authorRitz, Roberten
dc.date.accessioned2016-04-22T15:02:04Z
dc.date.available2016-04-22T15:02:04Z
dc.date.issued2015-06-11en
dc.identifier.otherCWPE1515
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/255353
dc.description.abstractIn response to cost changes, prices often rise more strongly or quickly than they fall. This phenomenon has attracted attention from economists, policy makers, and the general public for decades. Many assert that it cannot be explained by standard economic theory, and is evidence for "anti-competative" behaviour by firms. This paper argues against this conventional wisdom; it shows that simple price theory can, in principle, account for such asymmetric pass-through - even with perfect competition. From a policy perspective, knowledge of cost pass-through patterns in a market does not allow for strong inferences on the intensity of competition.en
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectAsymmetric price transmissionen
dc.subjectcost pass-throughen
dc.subjectelectricity marketsen
dc.subjectprice theoryen
dc.subjectrockets and feathersen
dc.titleThe Simple Economics of Asymmetric Cost Pass-Throughen
dc.typeWorking Paperen
dc.identifier.doi10.17863/CAM.5706


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record